Nick Powell
Louis van Gaal is prepared to send Nick Powell out on loan again with Nottingham Forest interested in signing him.Getty Images

Manchester United midfielder Nick Powell is reportedly set to leave the club on loan for the second time this season, with Nottingham Forest boss Dougie Freedman keen to sign him for the rest of the season.

According to the Daily Mail, the Forest manager, who also tried signing him during his managerial spell at Bolton is keen to take him to the City ground, as he is confident that the young midfielder can help them climb up the Championship table.

Forest, who were flying high in the Championship at the start of the season, have had a dip in form and are currently in 12th place 13 points off the play-off places and the manager is hoping that Powell can help propel them up the table with 17 games left to play.

Powell joined United from Crewe Alexandra in 2012, and was touted to be Red Devils legend Paul Scholes' replacement. But the midfielder has struggled to break into the first team and has spent time away from the club on loan. He spent last season on loan at Championship side Wigan, and started this season with Premier League newcomers Leicester City.

However, his loan spell with the Foxes was short lived, after the Old Trafford club recalled him due to lack of playing time. But certain reports also suggested that Leicester manager Nigel Pearson was not happy with the player's attitude and hence allowed him to return to his parent club.

It is now believed that Louis van Gaal has assessed the midfielder, who has featured twice for United's U21 since his return and is now ready to send him out for the rest of the season.

Various Championship clubs are reportedly chasing the midfielder, but it seems like Forest are leading the race ahead of rivals Derby County and Watford.