Knockaert is on the books at Fulham, but looks set to depart the Premier League side and head to the City Ground to link up with his former Brighton boss Chris Hughton.
Nottingham Forest are expecting to snap Knockaert up and the deal will see the player spend the season on loan at the Championship club.
If the move goes through he is poised to become the first signing made by new Nottingham Forest boss Hughton.
Fulham signed the 28-year-old, initially on loan, from Brighton in the summer of 2019 and then triggered a purchase option in July this year, with the deal potentially going up as high as £15m in value.
He helped the Cottagers win promotion and Hughton will be keen to drawn upon his promotion winning experience at the City Ground; the Frenchman also helped Brighton and Leicester City go up.
Nottingham Forest are also still showing interest in West Brom winger Kamil Grosicki.
The former European champions are holding talks as they explore a deal to sign the Poland international before the window closes.
Grosicki, 32, joined West Brom in the January transfer window this year.