Anderson joined Manchester City for a fee of £116M earlier this summer and his departure has left a hole in the Forest midfield that is yet to be filled.
Armstrong, who is still a teenager, has started both Everton games this season and is the prime target for Forest who are ready to launch a £40M bid to secure his services.
This was reported by David Ornstein who states that Forest are working on a deal and that would include future sell-on provisions for the Toffees which may prove lucrative if the 19 year old grows into a player similar to Anderson.
The worry for Forest is that Everton boss David Moyes stated after the Carabao Cup second-round win at Preston North End that wanted more quality in his squad, a plan which would not include selling a young talent such as Armstrong.
He also stated that if any sales were made in the final days of the summer transfer window, it would be almost impossible to find any sort of replacement.
“I think it would be very difficult to get it reinvested if anything came in. We are getting into a really late period now.”
Armstrong played the full 90 minutes at the weekend against Palace and despite Forest’s £40M offer set to be put on the table, it is unlikely Everton would be eager to sell especially to a Premier League rival.