Benda was released from his contract at Fulham in the summer after spending time at Championship side Millwall and Feyenoord in the Eredivisie in two loan moves that handed him 12 appearances in total.
He is being recruited primarily as third-choice goalkeeper, replacing the departed Angus Gunn who joined San Jose Earthquakes after being released by Forest.
George Syrianos, Chief Football Officer spoke on the move for Benda and revealed what he believes he can add to the side.
“Steven is an experienced player who we feel will add depth and competition to our current group of goalkeepers.
“Steven is someone who we know will work hard every day to push his teammates to keep standards high at the training ground, and we are sure he will fit in with the strong culture we have at the club.”
Following Benda’s move, Sky Sports reported that Forest are considering centre forward and full-back or wing-back options and also still want to sign a central midfielder.
He joins Ousmane Diomande, Gustavo Sá and Xaver Schlager in new signings for Forest who are set to face Leeds in their opening Premier League clash under new manager Oliver Glasner.