With the future of loanee defender Jack Hobbs still uncertain, reports in Scotland suggest an offer for 26-year-old full-back Wallace has been knocked back.
That is despite another financial storm brewing at the Ibrox club, currently playing in the third tier of Scottish football.
***Update*** Forest have confirmed the signing of Algerian striker Rafik Djebbour on Wednesday, the 29-year-old joining on a two-and-a-half year deal.