Real Betis is interested in signing the Brazilian player, who was initially set to join Lyon this month.
However, Lyon's plans to sign Danilo have been put on hold due to their recent demotion to a lower league.
As a result, Betis is now stepping in and looking to negotiate a loan deal with Forest for the midfielder.
Danilo joined Forest in January 2023 for £16m, after moving from Palmeiras.