His departure, confirmed by chairman Fred Reacher following Forest's 2-1 defeat at Ipswich, means that the former Scotland captain Archie Gemmill, one of the coaches at Forest, is now the leading internal candidate.
However, Stuart Pearce is understood to be interested in the post, and Martin O'Neill, of Wycombe Wanderers, and Glenn Hoddle, of Swindon, are also in the frame.
On the day when Rangers received tangible reward for their fifth successive title success, Falkirk and Airdrie took the drop from the Scottish Premier Division.
The party at Ibrox, where the League trophy was presented after their 1-0 win over Dundee United, was mirrored at Fir Park where Motherwell celebrated a 2-1 win over Falkirk and the prospect of another season in the elite. Chris McCart put the home side ahead and Brian Rice equalised before Dougie Arnott scored a late winner.Reuse content