Nicholson has appeared in 48 games this season for Orlando and made his 14th start against Portland on Sunday night. The 19th overall pick in last year's draft entered the game averaging 7.6 points and 3.5 rebounds.
His scoring average is 10th among rookies this season.
Nicholson, who will play for Shaquille O'Neal's "Team Shaq", joins Orlando teammate and second-year center Nikola Vucevic, who was previously selected for the game. Vucevic will be playing on Charles Barkley's "Team Chuck".