Agreeing fresh terms will see the striker bring an end to the mounting speculation regarding his future.
With Blackstock set to see his current deal expire at the end of the season, a move away from the City Ground has been mooted.
Leeds were among those believed to be keen, with Derby having distanced themselves from rumours suggesting they were ready to make a move.
It would, however, appear as though Blackstock is ready to stick with Forest.
The 26-year-old forward has never expressed a desire to move on and is prepared to commit himself to what he hopes will be a bright future with the Reds - as they chase promotion back to the Premier League.
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