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.
Liverpool manager Andoni Iraola has warned Bradley Barcola that he must learn to handle the pressure and scrutiny that come with his reported 123 million pounds transfer from Paris Saint-Germain.
Manchester United defender Lisandro Martinez has admitted that anger and frustration after the 2-0 Champions League defeat to Atletico Madrid prompted his criticism of the club's transfer strategy.
Paris Saint-Germain manager Luis Enrique has admitted his side were fortunate to beat Manchester City 4-2 after surviving a fierce second-half comeback to maintain their perfect start to the Champions League.
Aston Villa midfielder Ross Barkley praised the performance of this team following the 6-0 victory over Turkish giants Fenerbahce at Villa Park on Wednesday.
