City have shown interest in the 23-year-old for a while, seemingly as a replacement for the outgoing Bernardo Silva. The Cityzens saw their first bid rejected for the aggressive midfielder on Wednesday evening, with Forest holding firm in their valuation.
Although details of their bid were not disclosed, it likely fell short of the Reds' asking price, as they're holding out for more than the £105 million Arsenal paid for Declan Rice in 2023.
Anderson is not agitating to move away from the City Ground before the World Cup, despite being courted by the eight-time Premier League champions, and Man City have drawn up an alternative option if a transfer for the England international fails.
According to Fabrizio Romano, Newcastle United midfielder Sandro Tonali is "emerging as a strong option" for City after a stunning campaign at St James' Park.
Tonali made 53 appearances in all competitions during a difficult campaign for the Magpies and utilised his incredible ball-playing qualities to devastating effect.
Manchester United have shown admiration towards the 26-year-old as their midfield rebuild begins, but Newcastle could command a mouth-watering asking price for him.
Alan Shearer has suggested that his former side should ask for at least £90 million, so if that is the case, he won't be much cheaper to buy than Anderson.