The 23-year-old midfielder continues to impress in Ligue 1, and he's been lined up as a key target for the Magpies next summer, as part of a wider squad update.
Forest have been tracking Morton for a longer period, and they were rebuffed in their attempts to prise him away from Liverpool back in 2025.
Newcastle lost former captain Bruno Guimaraes and Italy star Sandro Tonali over the summer as Matthias Jaissle secured deals to bring in Nico Gonzalez and Sean Steur.
However, Morton's profile as a more possession-focused player offers something fresh to Jaissle's midfield, but Lyon will not entertain any offers for the 23-year-old in January, as per Football Insider.
Morton is under contract in France until and Lyon could push for almost double the €15M fee they pay Liverpool to sign him ahead of the 2025/26 season.