According to reports, Forest had their pick of a number of players in exchange for full-back Louis-Jean and decided on the former Kilmarnock midfielder.
Boss Gary Megson told the club website: "He's a player I didn't think we stood much chance of getting but Norwich have bought in other players and feel they are in a position where they can let Gary go.
"He's of an age where he could sit back and put his feet up but he wants to come to Forest and make a real go of it."