A season-long loan deal followed by a permanent move has been agreed with Hull City for the 24-year-old defender.
Davies told the official club website that he had landed 'one of the brightest defensive prospects outside the Premier League.'
The Reds drew 1-1 at Chesterfield on Tuesday night with Matt Derbyshire getting his name on the scoresheet.
Dorus de Vries played in goal with youngster Dimitar Evtimov having joined Nuneaton Town on loan.
Source: Forest MAD