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Wrexham believe the move represents a next-level appointment as the club bids to bolster its hopes of reaching the Premier League.
Nickson - who was also pivotal when Newcastle broke their transfer record to sign Miguel Almiron in 2019 - spent 15 years with the Magpies and will work closely with manager Phil Parkinson in his new position.
Manager Parkinson has regularly been kept updated of developments on the pursuit of Nickson and is expected to fully utilise the former Newcastle chief's wealth of experience.
His exact duties have not yet been confirmed, although Nickson is expected to be involved in a mixture of transfer activity and wider football operations.
He previously received glowing praise from current Magpies boss Eddie Howe and Amanda Staveley - who hailed Nickson as "amazing" during her time as a director at the club.
"Fortunately, we have an amazing head of recruitment in Steve Nickson, who has been with the club for a long time and has a really deep knowledge of the player markets. So we were able to quickly put together a transfer committee," Staveley previously said.
The Red Dragons secured three successive promotions under Parkinson between 2023 and 2025.
In what was their first campaign in the second tier since 1981-82, Wrexham finished seventh in last season's Championship, missing out on a play-off spot on the final day of the regular season.
On Wednesday, Parkinson took a 28-man squad to the United States of America, where his side will face Leeds United, Liverpool and Sunderland in pre-season fixtures.
The Red Dragons begin their competitive schedule at Middlesbrough in the first round of the Carabao Cup on Friday, 7 August (20:00 BST).
They begin their Championship campaign at Cardiff City Stadium on Monday, 17 August (20:00 BST).
They are yet to add to their squad this summer, although speaking after a 1-0 friendly win over Manchester United in Helsinki, Parkinson said he fully expects Wrexham to make signings in the transfer window.
"We feel we've got areas in the squad where we're light in terms of taking on the challenge of the Championship, which is a relentless league," said the Wrexham manager.
"There's areas which we feel we need to improve.
"We've identified those since the start of summer and we're working towards that."

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