Nketiah is expected to leave the Emirates this summer having come very close to joining Marseille in the last few weeks.
The striker had agreed personal terms with the Ligue 1 club but they failed to meet Arsenal’s valuation of the player.
A number of Premier League sides remain very interested in the one-time England international, who is open to a move in order to secure regular game time.
Bournemouth have pulled out of the race after signing Evanilson from Porto instead, but Forest, Crystal Palace and Everton are all still in the mix.
And Nuno Espirito Santo’s side are very much leading the race, with The Athletic reporting that Nketiah is their ‘priority’ as they look to sign a new No.9.
Forest have already made an opening offer worth £25million including add-ons but that has been rejected by the Gunners.
Negotiations between the clubs are ongoing, as are talks between Forest and Nketiah’s representatives.
It is said Arsenal want £30-£35m for their academy graduate who still has three years left on his contract.
Last season, Nketiah started just 10 Premier League games and only scored six goals in 37 appearances across all competitions, with the likes of Kai Havertz and Gabriel Jesus ahead in the pecking order.
He was an unused sub on Saturday as Arsenal kicked-off their season with a 2-0 win over Wolves, while Forest drew 1-1 with Bournemouth.
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