Abdulaziz Al-Hasawi, one of the club's new owners, confirmed that the former Ireland, Sunderland, and Wolverhampton Wanderers manager is one of the main contenders to take the reins at the Championship club.
Al-Hasawi feels that McCarthy has the required experience to guide Forest's new era as they seek a return to the Premiership. McCarthy has achieved the feat twice, with Sunderland in 2005 and Wolves in 2009. "Mick is one of the people we are talking to, but there are others. If he meets our requirements, we would be honoured to work with Mick," the Kuwaiti told a press conference at the weekend.
"It is very important for the manager to have good knowledge of this league and the teams involved in it.
"They must also have an understanding when it comes to working with a club and developing it.
"We are looking for somebody with a strong CV, with a lot of experience. We want somebody who has good, strong character to come in and inspire the players."
Al Hasawi added: "We have interviewed some people on the phone but we're starting to see people face to face and you get a much better impression when you see them face to face. They are more comfortable and can speak more openly."
Darren Ferguson, Glenn Hoddle, and Glenn Hoddle have all been linked with the vacant managerial position, but former Nottingham Forest player Gary Birtles believes that McCarthy is the right man for the job.
"Mick has a proven track record at this level, he knows how to win promotion from the Championship and he does things in the right way," Birtles wrote in ThisIsNottingham.
"He has an eye for a player and he knows how to get the best out of people. He can take unpolished diamonds from the lower leagues and turn them into players who are capable of performing at the highest level.
"I can see why Forest would go for him and, if he is appointed, I would be optimistic about the future."