An upbeat character, Arlidge took over as the head coach in 2010 and has re-signed for a year.
His reign has coincided with some tough times. In 2009 the Nuggets sat out the season because of a lack of financial backing and the team was still very much in survival mode when it re-entered the league last year.
Armed with a shoestring budget and a team of mostly local players, the Arlidge-led Nuggets struggled to compete, losing all 18 games in 2010.
The arrival of Craig Bradshaw and American imports Lance Allred and Scott O'Gallagher this year helped the side snap one of New Zealand's longest losing streaks, a 33-game barren run.
Arlidge remained positive throughout and was determined to help the franchise rebuild.
"I always saw it as a three-year gig," he said.
"So I'm actually pretty relaxed about it. It is just part of the process from going from basically nothing to trying to build something. And I actually think we are slowly doing that."
Arlidge's return follows news earlier this week Tall Blacks guard Mark Dickel has moved back to his home town and signed a two-year deal with the Nuggets.
Dickel's return is a huge vote of confidence in a basketball programme which has struggled to retain and recruit players. The franchise has slipped from the genuine contender it was in the mid 1990s to a permanent cellar dweller, claiming the wooden spoon in its last six seasons.
Arlidge hopes Dickel's decision will help inspire more confidence in the programme and provide some recruitment leverage.
On the court, Dickel will certainly add some energy.
The man nicknamed "Sparky" was lightning quick in his heyday and possessed the sort of passing game which made his team-mates looked good and his opponents silly.
"He can get the ball to guys when they need it and in the spots they want to get it. He will make our defence a lot stronger, as well, and organise the team.
"Off the court he will bring a lot, too. He'll bring us some true leadership for our younger guys. They will see how hard they actually have to work to get better."
Arlidge said the National Basketball League draw was not expected to be made public until about mid-October.
There is also a possibility the season will be condensed into 12 weeks, to allow the Tall Blacks more time to prepare in their bid to qualify for the Olympics in London next year.
