According to reports, City are plotting a £75million offer for the 22-year-old at the end of the season but Chelsea are also said to be ready to counter the bid.
Anderson has been impressive for Forest since joining from Newcastle United in 2024, featuring in 51 matches in all competitions, scoring twice and providing seven assists.
The Englishman has played every minute in the Premier League and Europa League this season under former manager Nuno Espirito Santo and his successor Ange Postecoglou.
Despite Forest's bad start to the season which sees the team lying in 17th position on the Premier League table, Anderson has started the last four matches for England under head coach Thomas Tuchel.
The former Scotland youth international has managed only been substituted once for England, helping the team to four consecutive victories without conceding a goal.
Ironically, the midfielder is set to return to Premier League action when the Reds host his admirers Chelsea at the City Ground on Saturday.
UK Prime Minister Sir Keir Starmer has condemned the decision to ban Maccabi Tel Aviv supporters from attending next month's Europa League match against Aston Villa, calling it "completely unacceptable".
Chelsea have been dealt a major setback after manager Enzo Maresca confirmed that Cole Palmer will be sidelined for another six weeks as he continues his recovery from a groin injury.
England goalkeeper Jordan Pickford has signed a new four-year contract at Everton until the end of June, 2029.
Tottenham Hotspur's coaching staff have reportedly grown concerned over goalkeeper Antonin Kinsky's recent training performances.
