Spurs are the only team in the Premier League this season who have a 100 per cent record and have won all of their opening three league games.
They will be travelling to South London on Saturday to take on Palace at Selhurst Park and are firm favourites to win the game.
The Eagles have drawn their last two games, including an excellent 2-2 against West Ham away from home, and have made a solid but unremarkable start under new manager Patrick Vieira.
Nicholas is certain that Crystal Palace will start developing into a good team under the Frenchman and their manager’s attacking instincts might just help them to move forward.
He believes Tottenham will beat Palace on Saturday but is certain that the Eagles will provide a stiff test to their London rivals.
Nicholas said on the Where’s Jeff podcast: “I generally do think Palace, under Vieira, might just start taking a few things in.
“They won’t be as disciplined and well-drilled as [they were under] Roy [Hodgson] but I think that might aid them.
“I know Spurs have had an excellent start but I think this is a really tough game to call.
“I see Spurs edging it but Palace will give them a real game.”
Tottenham will back themselves to keep their record going with another three points at Selhurst Park on Saturday.