Bade, who has struggled for game time this season at Forest, has not lived up to expectations at the newly promoted club.
With Forest signing over 20 players in the summer, he has been lost in the shuffle.
Manager Steve Cooper explained the player's lack of game time earlier this term, per Nottinghamshire Live: “We haven't got a bigger squad than normal in the Premier League; you can only name 25 in your squad anyway. So there is obviously going to be a line that some people don't quite get over, to get in the team.
“Loic hasn't featured yet. But he's training very well, he's settling in, his English is getting much better, he has a good attitude towards training and good self-belief. It's one of those things where you just have to work hard and wait for your time. When that is, that will be down to a number of factors."
The Athletic now adds that the club has made a decision about Bade's future, and that he will return to his parent club in the winter.
Forest will look to replace him with another center back, as they are set to be without Giulian Biancone for the rest of the season.