The midfielder has pledged his future to the Championship side after a period of uncertainty and manager Billy Davies is "delighted"
Fresh from scoring his eighth goal of the season in Forest's emphatic 5-0 FA Cup third round victory over West Ham, Reid agreed to extend his stay at the City Ground by a further two and a half years.
Speaking to the club's official website, Nottingham Forest manager Billy Davies said that he was "delighted" that the Republic of Ireland international has opted to extend his stay at West Bridgford.
"This is excellent news for the player, club and fans," said Davies. "We're delighted [Andy Reid] is going to be here for the next two-and-a-half years."
Reid, 31, started his professional career at Nottingham Forest and enjoyed spells at Tottenham Hotspur, Charlton Athletic, Sunderland and Blackpool before re-joining the Reds in 2011.