However, he has now released a statement declaring his immediate resignation, while questioning the reasoning behind him being denied clearance.
He said: "The Norwegian Civil Security Clearance Authority informs me that the reason that I will not receive a renewed security clearance is that my wife is a Chinese citizen and resides in China, where I support her financially.
"At the same time, they have determined that there are no circumstances regarding me personally that give rise to doubt my suitability for obtaining a security clearance, but that this does not carry sufficient weight.
"I have now had to take the consequences of this."
I will miss Jon Nicolaisen in his post as deputy governor, where he performed his duties superbly
- Oeystein Olsen, governor of Norway's central bank
In recent years, Norway has introduced stricter rules for the issuing of security clearances, making it difficult in many cases to get approval for anyone married to a person from a country with which Norway does not have security cooperation.
Central Bank Governor Oeystein Olsen said Nicolaisen's departure would be a big loss.
"I will miss Jon Nicolaisen in his post as deputy governor, where he performed his duties superbly as a close colleague and competent professional," Central Bank Governor Oeystein Olsen said in a statement.