Nottingham Forest are prepared to pay £35m to sign Jean-Philippe Mateta from Crystal Palace and are willing to offer the striker a significant pay rise.
Palace are open to letting Mateta go if their valuation of around £40m is met and they can sign a replacement.
Juventus and Aston Villa have looked at signing him but have been put off by the asking price.
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Mateta wants to leave Palace but has not handed in a formal transfer request. The 28-year-old has entered the final 18 months of his contract at Palace.
Relations between Palace and Forest were strained in the summer when Forest replaced Palace in the Europa League. The two sides are playing each other at the City Ground on Sunday, live on Sky Sports.
Palace are 15th in the Premier League, three points above 17th-placed Forest.
Palace and Forest resume rivalry
There is extra intrigue attached to Forest's approach for Mateta given the relationship between the two clubs over the past year.
In June, Forest wrote to UEFA with concerns about Palace's scheduled involvement in the Europa League for the current campaign.
Palace were then demoted to the Conference League by European football's governing body on July 11 after it determined that as of March 1, American businessman John Textor had control or influence at both Palace and French club Lyon.
Palace unsuccessfully appealed against their demotion to the Court of Arbitration of Sport.
As a result of Palace's demotion to the Conference League, Forest were bumped into the Europa League.
That led to a positive change in spending plans for Forest owner Evangelos Marinakis, who went on a spree to bring in James McAtee, Arnaud Kalimeundo, Douglas Luiz and Omari Hutchinson after the Palace demotion was made.
The situation was different for Palace, however, who have since sold Eberechi Eze and Marc Guehi to Arsenal and Manchester City respectively. Even though Palace have brought in Yeremy Pino and Brennan Johnson, losing Mateta - a key part of Palace's spine last season - would be another big blow.
Morrison: Why would Mateta join Forest?
Sky Sports' Clinton Morrison on the Premier League Show:
"I like Nottingham Forest as a football club. But what makes this strange for me is Mateta says he wants to play Champions League football. Forest are not playing Champions League football as they won't win the Europa League this season.
"Another thing is: will he go to Forest and play straight away? Igor Jesus is a great striker and he would be battling with him.
"Chris Wood is injured at the moment, then you have Mateta coming in and Taiwo Awoniyi scored at the weekend. With Lorenzo Lucca on loan from Napoli, you have four strikers there. They only play one up front.
"At Palace, he's the main striker, the only striker there. Why not stay there and try and get into the France World Cup squad?
"Get your form back - because his form has not been good - and Didier Deschamps will pick you in the France squad for the World Cup and you're living everyone's dream and your dream. Then get your move in the summer.
"I understand he's at an age where you have to strike while you're hot, but to move to a club lower than Crystal Palace doesn't make sense to me."
Strand Larsen seen as potential Mateta replacement
Should Mateta leave Selhurst Park this month, Sky Sports News understands Wolves striker Jorgen Strand Larsen is viewed as a potential replacement for the Frenchman.
The Wolves striker is a target for multiple clubs this month - especially Leeds - and wants to stay in the Premier League if he is to leave.
Palace enquired about Strand Larsen in December but were put off by Wolves' asking price of £40m at the time.
Forest are also among the clubs to have inquired about Strand Larsen this month. They appear to be open to signing another striker despite signing Lorenzo Lucca on loan from Napoli last week. There is still a lot to play out in the striker market before the deadline.
Aston Villa, who are also thought to be long-term admirers of Strand Larsen, are about to land Tammy Abraham for £18m from Besiktas.
Villa like Mateta too but money is tight and they must be conscious of their PSR obligations, which is also something being kept in mind at Leeds, who have so far been unable to agree a deal with Wolves for Strand Larsen following at least one bid.
(c) Sky Sports 2026: Jean-Philippe Mateta transfer news: Nottingham Forest prepared to pay £35m for Crystal Palace striker


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