Colchester have had a £100,000 bid for Matt Lockwood accepted by Nottingham Forest.
The full-back only arrived at the City Ground last summer, but after failing to oust Julian Bennett from the left-back berth he has been restricted to just 12 appearances for the Reds.
His former club Leyton Orient, with whom he spent nine years prior to his 2007 move, have ruled themselves out of the running for his signature meaning that he is now set for talks with the recently-relegated U's.
"We have had a bid accepted for Matt by Nottingham Forest and we are currently in talks with the player about a move to Colchester United," chairman Robbie Cowling told the club's official website.
Meanwhile, Forest's search for a striker has taken a new twist with reports that the club are keen on Sheffield United's former England international James Beattie.
Any move would appear unlikely as the Blades would require at least £4million to be tempted into a sale, and Derby's Rob Earnshaw could yet fill an attacking void at the City Ground.
Should Colin Calderwood fail in his attempts to lure either Beattie or Earnshaw to join his assault on the Championship next season, Brett Ormerod has revealed that he would be keen on a permanent move to the club after enjoying a productive loan spell towards the end of the 2007/08 campaign.
"I would love to come back," the striker told the Evening Post.
"But I have a year on my contract left at Preston and we will have to see what happens."