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.
Nottingham Forest are set to receive a double injury boost ahead of their Premier League showdown with champions Liverpool after the international break, with both Chris Wood and Callum Hudson-Odoi expected to return to action.
David Moyes has praised James Garner for his outstanding form this season, saying the Everton midfielder is edging closer to an England call-up.
Leeds United manager Daniel Farke has provided a detailed update on the club's injury situation as the Whites head into the international break aiming to reset after a frustrating run of results.
Arne Slot believes Liverpool's toughest spell of the season is now behind them, with a crucial run of winnable fixtures offering a chance to reignite their campaign after a heavy defeat to Manchester City.
