Kevin McDonald of Fulham (R) and Jose Semedo of Sheffield Wednesday in action
Premier League new boys Brighton and Scottish giants Rangers have both been credited with an interest in McDonald as they look to strengthen their midfield options for next season.
However, Forest are prepared to throw their hat into the ring for McDonald with City Ground boss Mark Warburton understood to be a big admirer of the Scot.
Crystal Palace's Yannick Bolasie and Fulham's Kevin McDonald challenge for the ball
Warburton is determined to rebuild his Forest side after they narrowly avoided relegation from the Championship last season and he will be given substantial funds in the transfer window to spend by new owner Evangelos Marinakis.
McDonald enjoyed a fantastic first season at Fulham last term following his arrival from Wolverhampton Wanderers.
The 28-year-old, played 48 games for Fulham last season in all competition, scoring three goals as Fulham reached the Championship play-off semi-finals only to lose to Reading.
Fulham would not welcome any moves for McDonald as he is a key member of Slavisa Jokanovic's side and they want to keep hold of their best players as they plan another assault at winning promotion to the Premier League next season.
Fulham's Kevin Mcdonald celebrates scoring a goal