The original St Nicholas' Church is thought to have been founded in the early 12th century by Ranulf Flambard, Prince Bishop of Durham.

[2] It was described in 1803 as "very ruinous",[2] while Sir Stephen Glynne, who visited in 1825, said it was "a large structure, & displays some marks of antiquity, although the barbarous hand of innovation has swept nearly all before it", and that its windows "alas!

—Inscription on the five original bells[7]Pritchett's new church, in the decorated gothic style, was estimated to cost £3,600 (equivalent to £458,000 in 2023) and was opened with great ceremony in December 1858.

[2] The building was described by the Illustrated London News at the time as "the most beautiful specimen of church architecture in the north of England", and was considered by Nikolaus Pevsner to be one of Pritchett's best.

[8] It was the first church in Durham to have a spire; which had not been part of Pritchett's original plan, but was added at the behest of Fox, who paid the £400 cost himself.

[10] During the 2020 COVID-19 pandemic, the church moved many of its activities online, producing morning and evening services each Sunday as well as daily prayer.

It has a large student population, and is classified by the Diocese of Durham as its own locality, meaning that its mission is recognised as distinctly different from those of other city centre churches.