The Welshman spent the second half of last season on loan with Fulham after being unable to get substantial minutes in Jurgen Klopp’s side, and was used as a gesture of good faith for the Reds to complete a deal for Fabio Carvalho.
A fee of £15m is being discussed by the two clubs with a willingness for the deal to get done, as Liverpool have already replaced Williams with Calvin Ramsay and Forest are looking to replace Spurs-bound Djed Spence.
Williams will also be hopeful of regular game-time in preparation for Wales’ first World Cup in 58 years, as they travel to Qatar in November.
Speaking in November, Klopp praised Williams for his attitude despite playing second fiddle to Trent Alexander-Arnold.
"He is pushing for a start, he's a young player and we are a good football team, it's not that easy to get into the team. We have Trent there, Milner has played there incredibly. Neco I saw for Wales and he did really well offensively. He can push.
“I can understand Robert Page says it makes sense he should play but they can qualify for the World Cup with a lot of players who aren't first choice. It makes sense Neco is here fighting. Neco is developing and improving."
Williams will also provide versatility, as he has been known to play further forward and on the left-hand side for his country.
Fulham are also interested in bringing Williams back to Craven Cottage after his successful loan spell, but Forest seemed to have gained the upper hand.
Pundit Noel Whelan believes that ‘the writing is on the wall’ for Neco Williams, especially after Ramsay’s arrival.
"If Fulham can do a deal to get him back into the club, whether that be on loan, or permanent, the writings on the wall.
“He had a successful season there, he seemed to be settled, the manager seemed to enjoy his style of play.
“I think it makes sense because you’ve brought in the new player from Aberdeen. You’ve sometimes got to let players forge their career.
“Right now, Neco Williams in the Premier League makes sense as well.”
Southampton and PSV Eindhoven are also reportedly interested in Williams, but with Forest already in discussions, it looks like they could get the deal over the line.
Featured Image Credit: Shuttershock