Moyes, who was shortlisted for the assistant manager's job at Manchester United, is the type of young coach Forest want as they go back to the drawing board after a disastrous season under Dave Bassett and Ron Atkinson. The fact that Moyes is used to working within a tight budget is also in his favour as Forest face a season of financial cutbacks in the First Division.
Moyes has guided Preston into a Second Division play-off berth having spent just pounds 25,000. His side has gained a reputation for playing stylish football and almost gave Arsenal a shock in the third round of this season's FA Cup.
Moyes has emerged as the top name on a list of candidates that also included Stoke City's Brian Little and Sammy McIlroy of Macclesfield Town. An official approach is expected this week, although an appointment would not be made until next month.
Southampton have lost their appeal to overturn the sending-off of Norwegian international defender Claus Lundekvam against Aston Villa despite a personal request from their manager, Dave Jones, to the referees' officer, Phil Don.
Lundekvam was dismissed for a second bookable offence by referee Neale Barry at Villa Park after he pulled at the shirt of the Aston Villa midfielder Ian Taylor in the Saints' recent 3-0 defeat at Villa Park.
Newcastle's French striker Louis Saha has had his hopes of an FA Cup final appearance severely dented after fracturing his cheekbone in a training ground accident. The on-loan Metz forward has had surgery after a collision with defender David Beharall, who made his senior debut in the 3-1 home defeat by Everton on Saturday.