 In February 2012, Papavasiliou was hired as manager of Olympiakos Nicosia for the third time in his managerial career.In September 2012, Papavasiliou reached an agreement with Apollon Limassol, for whom he had played from 1996 to 2000, and mutually terminated his contract with Olympiakos to complete the move.He did not manage to finish the season with the club, as he was sacked in March 2013, after a 9−6−6 record.