Anderson has enjoyed a standout season at Forest, with his rise attracting interest from several top clubs ahead of the summer transfer window.
The Sun report Manchester City still see themselves as frontrunners for Anderson, with Pep Guardiola’s side prepared to push ahead for the 23-year-old even amid uncertainty over the manager’s long-term future.
The report adds that a deal for the England international could be worth up to £100million.
Manchester United are also strong admirers of Anderson and view him as an ideal midfield addition as they prepare for a major rebuild in the centre of the pitch.
However, City’s position in the race is understood to have forced United to consider alternative options.
Those alternatives reportedly include Newcastle’s Sandro Tonali, Real Madrid midfielder Aurelien Tchouameni, Brighton’s Carlos Baleba, Bournemouth’s Alex Scott and Crystal Palace star Adam Wharton.
City’s interest in Anderson comes at a time when changes are expected in midfield.
Bernardo Silva is due to leave when his contract expires this summer after nine successful years at the Etihad, while questions also remain over Rodri’s future with the Spaniard entering the final year of his deal.
Although City strengthened in midfield last year with Tijjani Reijnders and Nico Gonzalez, further additions are clearly being considered.
Anderson joined Forest in a £35million move from Newcastle in 2024 and has rapidly developed into one of the league’s most complete midfielders.
His performances have also boosted his England standing, with reports suggesting he is expected to start alongside Declan Rice at the upcoming World Cup.
The midfielder underlined his quality earlier this year when he scored against City at the Etihad, further enhancing his reputation.
Forest are under no pressure to sell, with Anderson contracted until 2029, but City’s confidence indicates they believe a deal can still be struck.
If completed, it would represent another major statement signing from the champions — and a significant setback to Manchester United’s summer plans.