There is a possibility that the 29-year-old could leave the London Stadium just one year after joining West Ham from Southampton.
Ward-Prowse made 52 competitive appearances in the 2023-24 season, but he has seemingly dropped down the pecking order under Julen Lopetegui.
The former Southampton man played just 16 minutes across West Ham's first two Premier League matches, before he was afforded a starting opportunity in Wednesday's EFL Cup game against Bournemouth.
Forest are keen to offer Ward-Prowse a way out of West Ham, with Fabrizio Romano reporting that they are in talks over a potential move.
There is a belief that offloading Ward-Prowse could be crucial to West Ham's hopes of signing Paris Saint-Germain midfielder Carlos Soler.
Meanwhile, Ward-Prowse could add to Nuno Espirito Santo's current midfield options which include Ibrahim Sangare, Nicolas Dominguez, Elliot Anderson and Ryan Yates.
Lyon closing in on Zaha deal
Over in France, Lyon are reportedly on the verge of signing former Crystal Palace forward Wilfried Zaha from Galasataray.
After joining Galatasaray from Palace last summer Zaha went on to score 10 goals and five assists in 42 competitive appearances, helping his side clinch the Turkish Super Lig title.
However, Zaha has dropped down the pecking order at Galatasaray this term and is now set to leave the club in search of regular game time.
Palace and Leicester City held discussions over a potential move, but a move to England would make Zaha liable to pay income tax in the United Kingdom and Turkey.
While a move to the Premier League is off the clubs, the Ivory Coast international is on the verge of completing a switch to the French top flight.
According to The Guardian, Ligue 1 side Lyon are close to signing the 31-year-old on a season-long loan from Galatasaray.
Lyon owner John Textor has played a pivotal role in negotiations with Galatasaray and spoke to Zaha over the proposed move earlier this week.
The French side will not pay a loan fee for Zaha but they have agreed to pay the majority of his wages, believed to be around £130,000 a week.
Schmidt on verge of Leeds move
Meanwhile, in the Championship, Leeds United are reportedly close to signing St Gallen full-back Isaac Schmidt.
The 24-year-old scored for St Gallen in Thursday's Europa Conference League playoff clash against Trabzonspor, with the Swiss side prevailing on penalties to seal their place in the main draw.
Less than 24 hours after playing in the UEFA competition, Schmidt is now on the verge of completing a move to Elland Road.
According to journalist Patrick Berger, Leeds are in advanced negotiations over a potential deal to sign the Swiss defender.
The Championship side are willing to pay €3m (£2.5m) plus add-ons to add Schmidt to Daniel Farke's squad on the final day of the transfer window.
German club Werder Bremen had shown an interest, but Leeds are in pole position to sign him before the 11pm (BST) deadline.