The Australian has failed to win in his first seven games, losing five and drawing two, and has yet to win over the fans.
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According to The Telegraph, Dyche has emerged as the frontrunner to take charge at the City Ground, which would make him Forest’s third manager this season after Nuno Espirito Santo’s earlier dismissal.
Postecoglou’s attacking style has struggled to take shape with a squad still adapting to Santo’s defensive system.
While Marco Silva and Steve Cooper were also considered, Dyche appears the most realistic and available option as Forest seek stability and renewed direction.