The French international has been placed on a list of players available for sale at the right price following AC Milan's failure to qualify for the UEFA Champions League at the end of 2025/26.
Previous reports indicated a fee in the region of €18-20M could be enough to secure a deal, but that price could drop, as the transfer window prepares to close in the weeks ahead.
Reports from Football Insider claim Forest and Palace have both been alerted to AC Milan's updated stance on Fofana after Ruben Amorim made a clear call not to include the 27-year-old in his plans for the 2026/27 season.
Fofana joined Milan from Ligue 1 side AS Monaco in 2024 for €26M and quickly became an important figure in the squad.
He made 52 appearances in his debut campaign, before featuring 36 times last season, including 29 starts, but Amorim is seemingly looking to go in a different direction at the San Siro under his leadership.