It has been a busy summer for manager Steve Cooper with the 22-year-old set to become their 16th signing of the window.
Forest have agreed a deal with Premier League rivals Wolves worth £25m up front guaranteed, £7-10m of likely add ons, the rest is in more difficult to achieve up to maximum of £42.5m.
The England Under-21 international is set for a medical at the east Midlands club on Thursday before completing his permanent move.
Wolves were keen for him to stay and sign an extended deal. He played the full 90 minutes in their opening games against Leeds and Fulham.
Wolves have since signed midfielder Matheus Nunes from Sporting Lisbon for £38million.
Forest have already smashed their previous record fee twice this summer.
Taiwo Awoniyi (£18.45m) and Neco Williams (£18m) beat the previous record of £13.5m for Joao Carvalho back in 2018.
The deal for Gibbs-White will be their record signing by some distance.
Eight of their previous most expensive transfer have been during this window.
Manager Cooper guided them to the Premier League through the Championship play-offs last season, ending a 23-year exile.
Now with 16 signings, and more to come, the pressure is on to keep them up this season.
Forest have started with three points from their first two games, beating West Ham at home on Sunday.