Reports broke on Wednesday afternoon that the club and manager could end up moving on from each other due to 'movement behind the scenes'.
Pereira's departure makes him the fourth manager to leave Forest in the last year, following Nuno Espirito Santo, Ange Postecoglou and Sean Dyche.
He departs with a respectable record of eight wins, six draws and six defeats from 20 games - including taking the club to the Europa League semi-finals as well as recording victories over Tottenham and Chelsea.
His replacement will reportedly be former Crystal Palace boss Oliver Glasner - regarded as one of the greatest managers in the Eagles' history.
The Austrian guided Palace to the first ever trophy by beating Manchester City in the 2025 FA Cup final, before adding a Community Shield and UEFA Conference League in the space of a year.
He departed the London club at the end of the 2025/26 campaign following some public disputes with the ownership over the club's transfers, particularly allowing Marc Guehi to join City.
In an added layer of intrigue, the move also sees Glasner make the switch to the club that replaced Palace in the Europa League last season after they were found to have broken the competition's ownership rules and had to relinquish their spot in the tournament.
More to follow...