Nottingham Forest have reportedly reached an agreement with Newcastle United to sign Elliot Anderson on a permanent deal.

The 21-year-old has been at St James' Park since the age of eight and worked his way through the Magpies' youth ranks before making his senior debut in 2021.

Anderson impressed during a brief loan spell at Bristol Rovers in League Two during the second half of the 2021-22 season before being integrated into Eddie Howe's first-team squad at Newcastle.

The midfielder has since made a total of 55 appearances for the Magpies across all competitions, including 26 outings during an injury-hit 2023-24 campaign.

Anderson was deemed an invaluable squad player for Howe last season, but the academy graduate now appears to be on the verge of ending his 13-year association with the club.

Anderson to undergo Forest medical ahead of Newcastle exit

According to The Athletic, Newcastle have agreed a deal with Nottingham Forest for the permanent transfer of Anderson to the City Ground.

The report adds that Anderson is 'willing' to accept the move and he is expected to undergo a medical ahead of completing his switch to Nuno Espirito Santo's side.

It was previously reported that Newcastle were in talks with Forest over a potential swap deal involving Anderson and Reds winger Anthony Elanga.

Newcastle are believed to still be negotiating a potential deal for 23-year-old Elanga, but it has been agreed that Anderson will join Forest in a separate transaction.

Anderson to leave Newcastle amid financial predicament

Newcastle are said to be reluctantly prepared to part ways with Anderson in order to balance their books and avoid breaching the Premier League's Profit and Sustainability Rules.

The Magpies' financial predicament means that they are at risk of a possible points deduction for next season and are under pressure to sell players before the June 30 deadline.

Newcastle's potential sale of Anderson would represent 100% pure profit as the midfielder is a homegrown player who has been developed in their academy.

The transfer fee agreed between Forest and Newcastle for Anderson is currently unknown, but a separate report claims that the Magpies have agreed to sell teenage attacker Yankuba Minteh for around £33m to Brighton & Hove Albion.

Minteh, 19, joined the Magpies for around £6.5m last summer, but he is set to leave the club without making a single appearance after spending the 2023-24 season on loan at Eredivisie side Feyenoord.