Rovers had a bid for the 23 year-old rejected earlier this summer, but retain an interest in a player who made his name in the West Country.
Posh signed Nichols from League Two side Exeter in January, 2016. He was the club’s top scorer with 13 goals last season, including a last-gasp winner at Rovers last October.
Any sale of Nichols would leave Posh seeking a new striker. Oliver Hawkins of Dagenham & Redbridge and Scott Quigley of Welsh club The New Saints are two possible replacements.
Quigley (24) has scored goals in Europe for his currnt club.
Hawkins (25) top scored in the National League for Dagenham & Redbridge last season with 18 goals.
Posh are expected to field a trialist defender in tomorrow’s friendly against QPR. The Peterborough Telegraph believes it’s Alex Penney, a versatile defender from Nuneaton who started his career at Hull City.