The Gunners' academy graduate has been relegated to third-choice centre-forward behind Gabriel Jesus and Kai Havertz at the Emirates and has been expected to leave throughout the summer.
Despite reported interest from several clubs both in the UK and abroad, Arsenal's attempts to offload Nketiah have proved unfruitful so far, as moves to Marseille and Bournemouth both collapsed.
Marseille reportedly had as many as three bids rejected for Nketiah before moving on to Elye Wahi, while Bournemouth also failed to agree a fee with Arsenal and signed Evanilson from Porto instead.
Nottingham Forest also failed to meet Arsenal's price demands with an initial bid of £30m, but according to The Athletic, the two parties are now close to striking a deal for around the £30m mark.
Forest's Nketiah talks 'in final stages'
Several hours later, journalist Fabrizio Romano reported that Nketiah had shaken hands on personal terms with Nuno Espirito Santo's side, whose negotiations with Arsenal are now in their final stages.
The Garibaldi have reportedly also failed with a £22.2m bid for Feyenoord's Santiago Gimenez, but there is confidence that they will get a deal for Nketiah over the line in the coming hours or days.
Arsenal are reportedly hoping to bank as much as £35m for Nketiah, a fee that would make him their joint-most expensive sale of all time, level with Alex Oxlade-Chamberlain's move to Liverpool in 2017.
However, a £30m offer is expected to prove enough to prise the England international away from North London, and Forest will pip Crystal Palace to the signing of the Arsenal academy graduate.
Nketiah will follow Emile Smith Rowe, Arthur Okonkwo, Cedric Soares and Mohamed Elneny out of the Arsenal door permanently this summer, while Charlie Patino is said to be closing in on a departure too.
Is £30m a fair price for Nketiah?
Promoted into the senior ranks during Arsene Wenger's final year in charge in 2017-18, Nketiah is set to leave Arsenal with 38 goals and seven assists under his belt from 168 appearances across all competitions, a modest record at best.
The 25-year-old has often terrorised defences in the EFL Cup and has sometimes proven his worth as a penalty-box poacher in the Premier League, in particular when Jesus was out injured after the 2022 World Cup.
Nketiah's positive 2023 also saw him win his first England cap and net a brilliant hat-trick against Sheffield United in the top flight, but he has only really been at his best when he is guaranteed to start up front due to injuries to his attacking rivals.
The England international lacks the dribbling and chaotic ability of Jesus, while Havertz came on leaps and bound in the second half of his debut campaign, thanks in no small part to his runs into the box and aerial threat.
A summer exit for Nketiah is therefore the right move for all parties, and a £30m package is a brilliant deal for Arsenal, who can record the deal as pure profit thanks to his home-grown status.