Earlier discussions surrounding the 23-year-old had seemed to crumble just last week, with Aston Villa emerging as contenders for his signature.
However, Forest have now resuscitated hopes of securing an agreement for the former Benfica defender. The deal will include an option-to-buy clause.
The Portugal youth international remains unutilised this season, raising speculation about his long-term prospects under manager Mikel Arteta.
Tavares struggled in England after arriving at the Emirates Stadium in 2021, before going on loan to Marseille for the 2022/23 season.
His stint in France saw him bag six goals across 31 appearances. The left-full-back will bring an attacking dimension for Forest, with Harry Toffolo sidelined due to a ban for breaching betting rules.
As the final days of the transfer window gears up for a flurry of activity, Forest will be one of the busiest clubs.
There is a medical examination for Corinthians defender Murillo today as he edges closer to sealing a £13.75 million transfer.
Forest have also submitted a £7 million bid for Benfica goalkeeper Odysseas Vlachodimos.
The goalkeeper was on Manchester United’s radar, but they gave up on him and settled on a £4.25 million agreement for Fenerbahce’s Altay Bayindir.
Forest want to organise a swap deal with Bologna involving midfielder Nicolas Dominguez with Remo Freuler potentially heading the other way.
They are also weighing up an offer for Leicester City’s holding midfielder Wilfred Ndidi.
Brennan Johnson could be leaving the club, with Tottenham Hotspur and Brentford vying to secure his services.
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