We have studied Ni-substitution effect in LaFe$_{1-x}$Ni$_{x}$AsO ($0leq x leq0.1$) by the measurements of x-ray diffraction, electrical resistivity, magnetic susceptibility, and heat capacity. The nickel doping drastically suppresses the resistivity anomaly associated with spin-density-wave ordering in the parent compound. Superconductivity emerges in a narrow region of $0.03leq x leq0.06$ with the maximum $T_c$ of 6.5 K at $x$=0.04, where enhanced magnetic susceptibility shows up. The upper critical field at zero temperature is estimated to exceed the Pauli paramagnetic limit. The much lowered $T_c$ in comparison with LaFeAsO$_{1-x}$F$_{x}$ system is discussed.
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