Nottingham Forest chairman Fawaz Al Hasawi claims to have reached an agreement to keep Jack Hobbs at the City Ground.
The commanding centre-half has spent the first half of the 2013/14 campaign on loan with the Reds from Hull City.
A season-long agreement was struck last summer, but Hull retained the option to recall Hobbs should they wish to do so.
Speculation has suggested that they were pondering such a move, with interest having mounted steadily in a player who has entered the final few months of his contract.
Reading attempted to steal a march on their Championship rivals by lodging a bid for Hobbs, and Forest were informed that they would have to match that offer in order to keep the 25-year-old.
They have done just that and appear set to tie the defender down on a contract until 2016.
Al Hasawi posted on his personal Twitter account: "I am delighted to announce that I have just agreed a deal with Hull City's chairman for Hobbs."
Hobbs has been an ever-present in the league for Forest this season and netted a memorable match-winner during his first derby date with arch-rivals Derby County in September.