Nottingham Forest have a contractual obligation to make Chris Wood's move to the City Ground a permanent deal at the end of his season long loan.
In a deal packed with incentives for Wood he can earn himself an extra year of contract with the Trees.
Newcastle United are expected to bank £15million from the sale and the striker - who arrived from Burnley last January - will make a significant cost saving on the wage bill with the player one of the highest earners at St James' Park.