Newcastle United have confirmed that midfielder Elliot Anderson has completed a permanent transfer to Nottingham Forest.

The 21-year-old, who came through the Magpies' academy system after joining at the age of eight, departs the club after making 55 senior appearances for his boyhood club in all competitions.

After making his professional debut in January 2021, Anderson impressed during a brief loan spell at Bristol Rovers in League Two during the second half of the 2021-22 season before returning to Tyneside to re-join the first-team squad under Eddie Howe.

Anderson was deemed an invaluable squad player for Howe last season, playing 26 times during an injury-hit campaign and was regarded as a popular figure within the dressing room and among the club's supporters.

Anderson joins Forest amid Newcastle's financial predicament

However, Newcastle have reluctantly made the decision to sell the highly-rated midfielder to balance their books and avoid breaching the Premier League's Profit and Sustainability rules.

The Magpies were aware that they were at risk of a possible points deduction for next season if they failed to generate funds from sufficient sales before the June 30 deadline.

Anderson will now begin a fresh challenge with Nottingham Forest, where he has put pen to paper on a five-year contract that runs until June 2029.

Forest chief "excited" by Anderson arrival

Forest have allegedly forked out £35m to sign the Whitley Bay-born midfielder, who becomes Nuno Espirito Santo's first signing of the summer transfer window.

"We are all delighted to welcome Elliot to Nottingham Forest and pleased that he has chosen to continue to develop his talent with us in the Premier League," Forest's chief football officer Ross Wilson told the club's official website.

"We are sure he will thrive in a Forest shirt, as other players in his age profile have done.

"As soon as the opportunity arose for him to potentially join, it was something we were all excited to make happen."

In a separate deal, Forest have confirmed that goalkeeper Odysseas Vlachodimos has moved to Newcastle on a permanent basis, departing the Tricky Trees after just one season at the City Ground.