Sheffield Wednesday's Lewis McGugan celebrates scoring their first goal
A report in the Daily Mirror earlier this week claimed Forest were planning a shock move to bring McGugan back to the City Ground after falling out of favour at Sheffield Wednesday
Lewis McGugan scores Nottingham Forest's second goal from the penalty spot
Wednesday are willing to let McGugan leave Hillsborough before the close of the transfer window with the midfielder slipping down the pecking order in Carlos Carvalhal's plans.
McGugan was one of the Portuguese's first signings at Hillsborough last summer, having impressed during a loan spell the previous campaign.
However, the former England Under-21 midfielder found games hard to come by last term, featuring just 17 times in all competitions.
Hal Robson Kanu of Reading (L) and Lewis McGugan of Sheffield Wednesday in action
McGugan is thought to be keen on a move away in search of regular first-team football and a number of clubs are understood to be monitoring his situation.
Forest have been credited with an interest in re-signing McGugan, but sources close to the club have told HITC Sport that McGugan is not on their list of targets.
Lewis McGugan - Nottingham Forest in action against Middlesbrough
McGugan started his career at Forest coming through the ranks to make over 225 appearances for the club before joining Watford in the summer of 201