Coady, 30, has been on the books at Wolves since 2015 and he has so far made 273 league appearances for the Molineux outfit.
He was shipped out this season to Everton, with the Toffees having the option to buy the English centre-back at the end of the loan deal.
The England international is now on his way back to Wolves as Sean Dyche’s side have chosen not to trigger the clause mentioned in his loan deal.
And both Nottingham Forest and Premier League new boys Sheffield United are keen on the 30-year-old centre-back.
But it is claimed that Forest may have a financial advantage over the Blades when it comes to meeting Coady’s financial terms for next season.
Coady is not an unfamiliar face at Bramall Lane where he spent the 2013/14 season on loan from Liverpool, but it is suggested that Paul Heckingbottom’s side may lag behind in the race to sign Coady from the perspective of a limited budgetary option.
The 30-year-old defender is expected to leave Molineux this summer as Wolves are tipped to truncate their next season’s team budget from the FFP point of view.
It remains to be seen now whether Nottingham Forest can seize the opportunity to secure Coady’s services or not.