Diogo Goncalves is reportedly returning to Benfica at the end of the season.
The 22-year-old winger joined the Reds in June alongside fellow compatriot Joao Carvalho, the latter signing for a club-record fee.
Goncalves arrived on loan for the season with the option of making the deal permanent at the end of the campaign.
The Portuguese has made just ten appearances in all competitions this season, only seven of them coming in the Championship, and Record , a publication in his homeland, claim Forest will not take up the option.
His sole start came on his debut, August's 1-1 opening day draw with Bristol City.
Goncalves has appeared just three times under Martin O'Neill after he replaced Aitor Karanka in January and he hasn't made a matchday squad since March's 3-1 defeat to Aston Villa at the City Ground in which he came off the substitute's bench for the final 14 minutes.
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