The 22-year-old is now expected to move to the City Ground before the transfer window shuts on September 1.
Forest manager Steve Cooper has been key to securing Hudson-Odoi after building a relationship with the forward during his role in England Under-17s’ World Cup glory in 2017.
Hudson-Odoi is keen to get his career back on track having turned down a move to the East Midlands last summer in favour of joining Bayer Leverkusen on loan.
The academy graduate was once regarded as one of the finest young attackers in world football but has struggled through injury and not being selected at Chelsea.
Hudson-Odoi saw a move to Fulham collapse earlier this month with the Cottagers turning their focus to Sevilla forward Lucas Ocampos.
He is currently training with Chelsea’s Under-21s team at Cobham in a group that features fellow first-team exiles such as Malang Sarr.