Forest boss Dougie Freedman is in the market for midfield reinforcements after seeing his options hit by injuries.
Michael Mancienne faces a spell out after picking up a hamstring injury last time out against Hull City and he joins fellow midfielders Andy Reid, Ben Osborn and Robert Tesche on the sidelines.
Hammond has been linked with a loan move away from Leicester for the last few weeks after finding himself down the pecking order in Claudio Ranieri's starting XI so far this season, with the Foxes riding high in the Premier League.
The former Brighton & Hove Albion man has made just one appearance, in the Capital One Cup win at Bury, and a number of Football League clubs are monitoring his situation at the King Power Stadium now that the loan window is open.
Sheffield United were hoping to sign him with Hammond's former Southampton boss Nigel Adkins keen to be reunited with him, but they were unable to agree a loan deal.
Hammond, who joined Leicester from Southampton in the summer of 2013, is entering the final year of his current deal at Leicester and his experience, having won promotion twice with the Foxes and Southampton, makes him an attractive proposition to sides looking to bolster their ranks with loan recruits.