Steve Cooper’s side are keen to make the former England international their second addition from Newcastle this month, following the loan arrival of Chris Wood.
Shelvey will sign a two-and-a-half year deal at the City Ground after undergoing a medical later today.
Shelvey’s contract at St James’ Park was due to expire at the end of the season, which has led Steve Cooper’s side to move in for the midfielder.
On top of Shelvey and Wood, Forest have also added Brazilian pair Danilo and Gustavo Scarpa and are also chasing a goalkeeper, a centre-back and a winger before Tuesday’s deadline.
Shelvey, 30, has made just three Premier League appearances for the Magpies after falling down the pecking order with the Tyneside club.
Former Porto centre-back Felipe joined Atletico Madrid in 2019, making 85 appearances for the LaLiga side.
However, there were rumours of his move away from Madrid, with Wolverhampton Wanderers keen to explore the possibility of nabbing the Brazilian.