Skysports.com understands that Crystal Palace have accepted a bid from Nottingham Forest for Ben Watson.
The midfielder has refused to sign a new contract with the Eagles, leading to widespread speculation concerning a move elsewhere.
A host of Championship clubs have entered the hunt for the talented 23-year-old, with Neil Warnock previously stating that he is resigned to losing the player this summer.
With the transfer window set to close on Monday any interested party must make their move now if they are to push a deal through.
Forest, fresh from a 5-1 mauling at the hands of Wolves at the weekend, appear to be the first to show their hand.
Reds boss Colin Calderwood has matched Palace's asking price, but is likely to face competition from elsewhere in his attempts to land Watson.
Birmingham have been mentioned as admirers, but appear to have cooled their interest, while Queens Park Rangers are expected to mount a bid a hijack Forest's hopes.