Dyche has reportedly agreed to take over as Forest's manager, but only if he is offered a long-term contract.
The club views Dyche's coaching style as a good fit for the team, and he is expected to assemble a team of experienced coaches, including Ian Woan and Steve Stone.
Dyche has a personal connection to Forest, having played for the team as a youth player in the late 1980s under manager Brian Clough.
He has been out of a job since leaving Everton in January and could take control of Forest in time for their Europa League match against FC Porto later this week.
