Lansbury, 26, came up through the ranks at Arsenal before joining Forest in the summer of 2012, and he's now racked up 150 appearances for the club, scoring 33 goals from midfield
Newcastle's Issac Hayden and Nottingham Forest's Henri Lansbury in action
The talented midfielder, who had loan spells with Scunthorpe United, Watford, Norwich City and West Ham United during his time with Arsenal, is out of contract at the end of the season, meaning he can leave the City Ground for free next summer.
Forest are now likely to cash in for Lansbury whilst they still can during the January transfer window, and reports suggest he could be on the move in the coming weeks.
WD Sport report that Lansbury has held talks over a move to re-join Watford, and having ruled out moves to Birmingham City and Derby County, his choice is now down to Watford or Newcastle United.
Henri Lansbury during his spell at Watford
Lansbury hit five goals in 39 games on loan at Watford during the 2009-10 season, and with the Hornets seeking both a playmaker who can replace the injured Roberto Pereyra and more English talent, Lansbury fits the bill nicely.
A return to Vicarage Road could be on the cards for Lansbury, who has allegedly been given permission to speak to the Hornets about a cut-price January move back to the club – but Newcastle are also believed to be pursuing a shock deal.
Newcastle fans heavily criticised Lansbury earlier this month after he won two penalties against the Magpies during Forest's 2-1 home win against Rafael Benitez's side.
Lansbury may not be the most popular signing for Newcastle, but he has undoubted quality and would bring depth in midfield, which would be important given Jonjo Shelvey's absence.
Lansbury now has to decide whether he wants a return to his former club and an instant move to the Premier League, or becoming a part of Newcastle's push for the Championship title, with Forest seemingly resigned to losing him next month.
Would you like to see Lansbury join Newcastle or Watford?