News of Forest's interest in the Coventry-born starlet has grown over the previous 24-hours, and information now indicates both clubs have agreed a fee, allowing Paterson to begin contract negotiations with the East-Midlands outfit.
As we reported this morning, Huddersfield Town had previously been favourites to land 'Pato' after their initial offer was turned down, but Forest had overtaken them in the race for his signature.
A bid in the region of £700,000 plus add-ons should Forest reach the Premier League within a set ammount of years, is rumoured to have been agreed.
Coventry-born Paterson made a big impact in League One last season, scoring 13 goals in 51 appearances, in all competitions.
Sky Sports Journalist Pete O'Rourke has confirmed the news, via Twitter;
Nottingham Forest set for talks with Jamie Paterson after agreeing fee with Walsall for winger. #nffc #walsallfc
— Pete O'Rourke (@SkySportsPeteO) June 29, 2013