Steve Cooper wants the England Under-21 international at the City Ground and Nottingham Forest have been talking to Dijon to do a deal.
Panzo has been at Nottingham Forest’s training ground today to discuss personal terms and then undergo a medical.
But no agreement is done with Dijon yet, although talks are progressing well, according to French outlet Foot Mercato.
It is suggested that only a few details remain from stopping the transfer from being completed and all those involved are confident the move will happen.
Panzo has missed the majority of this season through injury and has only made three appearances for Dijon, all coming in the French Cup.
He played 22 times in Dijon’s doomed Ligue 1 campaign last term, picking up five yellow cards.
Dijon have Panzo under contract for a further 18 months.
