The club have been looking for wide reinforcements, having sold Anthony Elanga to Newcastle for a club-record deal of an initial £55m, external, and have already signed Dan Ndoye from Bologna.
Brentford also had a £35m bid turned down last month for Hutchinson, despite the offer meeting his relegation release clause.
Since the offer was not cash up front, though, it was rejected and the clause expired.
The Bees did come back to the table after selling Bryan Mbeumo to Manchester United, but were unable to agree a deal with Ipswich, leaving Forest in pole position to bring him to the City Ground.
Hutchinson – who scored in England Under-21’s extra-time final victory against Germany in June after being set up by McAtee – joined Town from Chelsea for £20m last summer after spending 2023-24 on loan at Portman Road, helping Ipswich into the Premier League.
He scored three goals in 31 league games last season but was unable to stop Kieran McKenna’s side dropping back into the Championship.
Ipswich, who drew their opening Championship game 1-1 at Birmingham, also sold striker Liam Delap to Chelsea in a £30m deal after he scored 12 goals last season.
