Nyquist will replace Red Wings teammate Johan Franzen, who is on injured reserve with concussion issues.
The 24-year-old had his first NHL hat trick Sunday against the Washington Capitals and in his past eight games he has eight goals and four assists. In 30 games this season he has 13 goals and 22 points.
"Obviously I'm really excited," Nyquist told the Red Wings website. "It's going to be something special to represent your country in the Olympics. They don't come around too often, so it's going to be an amazing experience."
Nyquist is the sixth member of the Red Wings to play for Sweden in Sochi, joining forwards Daniel Alfredsson and Henrik Zetterberg, defensemen Niklas Kronwall and Jonathan Ericsson and goaltender Jonas Gustavsson.
"They're all happy for me, they all knew [Sunday] too, so it was fun," Nyquist said.