Nuno has signed a new deal with Forest to 2028 after guiding the club to Europa Conference League qualification last season.
Forest owner Evangelos Marinakis said: "Nuno has made a great impact and performed very well during his time with us so far.
"He has demonstrated that he maximises player performance and is an expert at developing players, whilst also embedding our young talent into the first team set-up.
"We enjoy a strong and solid relationship together and, above all, we share the same dream and ambition of writing a new history for Nottingham Forest, competing in the Premier League and in Europe and winning trophies for our great club!"
Nuno also said: "I am delighted to be able to continue our journey at this fantastic football Club.
“Since we arrived at Forest, we have worked extremely hard to create a special bond between the players, the fans and everyone at the Club, which helped us achieve great things last season.
“Now is the time to work harder than ever as we strive for more special memories together.”