Nylander will be assigned to the Toronto Marlies of the American Hockey League, the Maple Leafs also said. The 18-year-old was selected No. 8 overall by Toronto in the 2014 NHL Draft.
MODO general manager Per Svartvadet said that his club had "no control" over Nylander being recalled, but added they were pleased with his development.
"We are extremely proud and happy that we helped William to the player he now is," Svartvadet said in a press release.
In 21 games with the Swedish club this season, Nylander has recorded eight goals and 20 points.
Most recently, as a member of Team Sweden at the 2015 International Ice Hockey Federation World Junior Championship, Nylander recorded three goals and ten points during the tournament, helping Sweden place fourth.
- Josh Sanchez