The veteran winger hopes to sign for Forest today as a player in time to make his debut against Liverpool tomorrow, but Bradford are seething about the approach.
Waddle mistakenly thought he had an escape clause in his contract, but Bradford are demanding a fee for him - or the striker Jason Lee - as compensation.
The angry First Division club are also considering reporting Forest to the Premier League for an illegal approach to Waddle, who is under contract for the rest of the season.
Waddle announced his departure before training yesterday morning, but was ordered not to travel to Nottingham until a fee was arranged. Instead, he opened a sports shop in Leeds rather than stay at Bradford's training ground.
One player happy to join Bradford City is the Bolton Wanderers goalkeeper, Aidan Davison, who is moving to the Valley Parade club on a free transfer after a year in the shadows at Bolton. He stands by to make his debut at Reading tomorrow in place of the suspended Jonathan Gould.
Jay Notley, the 18-year-old Charlton midfielder, was yesterday given the go-ahead to resume his football career by the Football Association.
Notley failed a drugs test in November last year when he tested positive for cocaine, cannabis and Ecstasy. While serving a three-month ban he underwent rehabilitation at an FA-approved centre. He will resume training on Monday.Reuse content