The 20-year-old caught the eye last term after cementing a first-team standing.
With Hearts' financial struggles well-documented, it comes as no surprise to learn that Holt is generating plenty of interest.
It is understood that Forest made an initial approach for his services last week, but were knocked back.
They have now returned to the negotiating table with an improved offer.
Forest boss Billy Davies is in the market for midfield reinforcements, with the Reds having also targeted Middlesbrough's Grant Leadbitter.