Billy Davies
The Reds manager hopes to make the flying winger one of several new signings between now and the end of the transfer window this weekend.
Davies also hopes the club can tie up an extended loan deal for Nicky Shorey and a permanent move for Pole Raddy Majewski.
Moses, 19, has been linked with a host of big-name clubs including Liverpool, Arsenal and Real Madrid – but Forest believe they could be the only club to show a serious interest in the player, who has netted six times in 18 appearances this season.
Eagles manager Neil Warnock rates Moses as one of the club's brightest young talents in years. But cash-strapped Palace could sell if Forest meet their £3m asking price.
"He is a player on our list (of targets)," said Davies. "The recommendations have been given (to the acquisitions panel) and we now wait to see what happens.
"There is nothing else I can report yet. But I think we do need a wide left player.
"He is a young player with a lot of potential."
Davies confirmed that Forest are also in negotiations to extend full-back Shorey's loan from Aston Villa until the end of the season – and to sign midfielder Majewski permanently.
And he revealed that Forest are also on the trail of a big-name player who has not yet been publicly linked with the club.
"We are in negotiations with Aston Villa. We thank them very much for the loan of Nicky so far, he has been excellent and professional in what he has done for us," he said.
"We have to have a conversation to see if we can move things forward.
"We are also in negotiations with regard to Raddy and there is somebody else we are looking at, who we have not been linked with in public yet."
Davies also offered a warning to Newcastle, amid talk that their promotion rivals are preparing a fresh bid for James Perch.
"We are not a selling club, we are trying to add to the squad, not reduce the squad size," he said. "That is the end of it."