The former Tottenham manager says he is not interested in taking charge at the City Ground and is sorry to see sacked boss Steve Cotterill lose his job
He had become the bookies favourite to take charge of the two time European Cup winners after the sacking of Steve Cotterill.
However the 65-year-old has today ruled himself out of the running.
He told the BBC: " “I am not interested, but it’s an amazing club with great tradition.
"I’m sorry to see Stevie Cotterill lose his job.”
Nottingham Forest becomes the second job in two days that the Londoner has distanced himself from.
He had also been in contention for the vacant Russia national job after being revealed as one of 12 managers named on a shortlist.
Darren Ferguson and Mick McCarthy are the bookmakers favourites to assume the reins at the City Ground.
The takeover of the club from the wealthy Al-Hasawi family was completed on Tuesday and means the Championship club have money to spend in order to return to the top flight.