The 30-year-old has shown enough during his loan spell from Sunderland to convince Billy Davies to make Vaughan his fourth signing of the past couple of days with local newspaper reports in the North-East suggesting a permanent deal will follow in the summer.
Rafik Djebbour, Daniel Fox and Kevin Gomis were confirmed as new arrivals at the City Ground on Thursday.
As the transfer window prepares to close, the Reds continue to be linked with another former loanee, Jack Hobbs, and striker Danny Graham although his old club Middlesbrough are also in the hunt for the player.
Leaving Nottingham temporarily is Davies' son Mark. The 20-year-old midfielder has joined St Johnstone on loan for the remainder of the campaign.