The Reds will receive a 'substantial six-figure sum' from the deal, according to the club's chief executive Mark Arthur.
Arthur revealed Forest were prepared to go without a main sponsor for the new Championship season after rejecting a number of unsuitable suitors, until Victor Chandler made an offer.
"We are delighted to have Victor Chandler as our main sponsor for the forthcoming season," said Arthur. "We are pleased to be associated with such a prestigious name and are looking forward to enjoying a good relationship.
"After a long association with Capital One we had various offers from companies but rejected them all. They were not the right brand name and were not offering the right money.
"We were prepared to go with a blank shirt this season until we were offered a significant six-figure sum from Victor Chandler. It has happened very quickly."