Burnley launched a bid to sign the central midfielder in August, but Lansbury rejected the opportunity to move to Turf Moor.
The former Arsenal man felt that he could not leave Forest after helping them make such a positive start to the campaign, and he has no regrets over his decision.
“Obviously Burnley were very interested and I have worked with Sean Dyche before at Watford and he's a very good manager," he said. "He would probably get a lot out of me. But I thought it was right to stay at Forest.
"The way the boys started the season, we were playing well and it was like 'do I leave now or do I stay?' At that stage, I was playing well and didn't want to leave. Obviously it was a gut feeling to stay, but like I said, Sean is a great manager and I might work with him in the future.
"It is a big part of the game feeling settled as a player. It is nice being settled in somewhere and obviously being captain as well, it made sense to stay at Forest and show them what I can do."
Forest’s form over the season so far has been frustratingly inconsistent, and they are currently occupying a mid-table spot.
The Reds have picked up some impressive victories this term, but they have also struggled in matches where they were expected to win.
It leaves them in 15th place in the Championship table – seven points back from the play-off spaces heading into the busy festive period.
Burnley, meanwhile, have made an impressive start to their campaign and they look to be among the favourites for promotion.
The Clarets are in fifth place, and they have lost only three of their first 20 league matches.