The young Irishman is out of contract this summer but Forest would still have to pay a fee as he is under the age of 23.
A tribunal would set the amount which is likely to be around £300,000 plus a bonus on appearances and goals. Peterborough sold Leon McKenzie to Norwich in a similar situation earlier this season but Nigel Worthington had to pay closer to £1m for the striker after they gained promotion to the Premiership.
Forest already have the likes of Marlon King, Gareth Taylor and David Johnson at the club but boss Joe Kinnear wants more competition going forward next season after all of the above suffered either injuries or suspensions last term.