The Manchester United attacking midfielder has been linked with the club this week.
The former Crewe Alexandra attacker has been linked with a move to Forest by the Daily Mail, who claimed the only thing blocking the deal was a calf injury he picked up this week.
He told BBC Nottingham Sport today that they had not been in touch with United about a move for the player and that no deal looks likely at the moment:
"I have not spoke to Man United at all. I have not spoken to Nicky Powell's people at all. I think it is just people putting two and two together.
"That being said I do think he is a wonderful player. If he was to become available for loan we would of course be interested but with our restrictions I am sure it is a long way from that happening."
Powell has struggled to break into the United first-team in recent times and his fitness battles off the pitch have also been well documented.
That being said he is a very talented and versatile player who would be of a big benefit to many a Championship side.
However, it does not look Forest will be that team considering they snapped up Bojan Jokic and Gary Gardner on loan deals already today from Villarreal and Aston Villa respectively.