The midfielder looked certain to join Alex McLeish at Forest after arriving at the City Ground for a medical early on transfer deadline day.
But Peterborough owner Darragh MacAnthony revealed that the deal was off after Boyd, who was also a target for Crystal Palace, apparently failed the medical due to poor eyesight.
MacAnthony then took to Twitter to lambast Forest for their handling of the deal, branding the affair a "total disgrace".
He wrote: "What is with NFFC messing around with my club. 1st my manager, now after putting Boyd through a medical since 10am this morning, their owner has cxxx the deal at last minute when their manager wants him. Farcical & ridiculous.
"Apparently after playing 300 games in 6 and half years, his vision isn't 20/20 so no deal. Total disgrace the whole thing."
A tweet from the official Peterborough account added: "Posh can confirm that the proposed transfer of George Boyd is off due to an inconclusive vision test as part of the medical."
Boyd, who joined Peterborough from Stevenage for £260,000 in 2007, spent time on loan at the City Ground in 2010 but a permanent deal never arose.
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