In a statement announcing Billy Davies as their new manager, Forest confirmed "Davies will be welcomed back together with Deputy Manager Ned Kelly"
A short time ago Walsall released a statement confirming "David Kelly has today left the Banks’s Stadium to link-up with Billy Davies at Nottingham Forest."
As we reported earlier the 47-year old had been subject to speculation surrounding his future just nine days after a sensational return to the club.
Kelly's contract at Walsall included a clause that allowed him to discuss linking up with Billy Davies, should he be appointed manager at any point during the deal.
With his long time friend Billy Davies reentering the workplace it was difficult for 'Ned' to turn down the advances of Forest and he has now agreed terms and completed the switch.
Walsall will recieve undisclosed compensation.