Club officials will meet with representatives from the Football Association on Monday where they will present plans for a 45,000 all-seater stadium in the Gamston area of Nottingham, less than a mile from their current home at the City Ground.
England hope to stage the World Cup in either 2018 or 2022 and Forest chief executive Mark Arthur insists a new stadium is a must if Nottingham is to be considered as a host city.
"Nottingham's bid to be a host city has made tremendous progress over the last few months with the contribution of the club, local authorities and other partners," said Arthur in an official statement.
"We have been working tirelessly together with its partners at Rushcliffe Borough Council, Nottingham City Council and Nottinghamshire County Council to refine the prospective World Cup stadium proposals in advance of the latest round of FA World Cup inspections to potential host cities.
"After exhaustive studies of the existing City Ground and how redevelopment of both temporary and permanent new facilities could take place on such a restricted site, the bid team have concluded, with the FA, that it is impossible to transform the ground into a fully compliant FIFA stadium fit to host World Cup matches.
"Therefore, the club have sought to further evolve their plans for a 'new build' FIFA compliant stadium.
"The 'new stadium' concept represents the very opportunity to meet FIFA requirements, provide a magnificent legacy for Rushcliffe and Greater Nottingham, but at the same time recognising the sensitivities and concerns of local communities."
Nottingham is not the only city in the Midlands that has registered an interest in becoming a host - Derby and Leicester have also submitted bids.
Birmingham, Bristol, Hull, Leeds, Liverpool, London, Manchester, Milton Keynes, Newcastle and Gateshead, Plymouth, Portsmouth, Sheffield and Sunderland make up the 16 hosts hoping to stage matches.
The final decision on which cities will host the World Cup should England's bid be successful will be made in December.
England's bid will then be submitted to the game's governing body FIFA next summer, with the winning country announced in December 2010.
A list of 12 venues must be submitted in England's bid, including 10 stadia with a minimum capacity of 40,000.