Forest Chief Executive Mark Arthur told the official website: "We today recieved further funding from our Chairman Nigel Doughty to enable us to make the outstanding payment and are now moving forward with the City Council to finalise the proposed re-financing which has been the topic of recent debate.
"The City Council has maintained that they wish to support Forest and to enable the club to continue to play at The City Ground and with further substantial support from Nigel Doughty we now have a basis upon which to proceed to a definitive agreement on this important issue."
Press reports suggested potential ground-sharing with the likes of Notts County, Leicester City or even Derby County but it looks like The Reds' future at The City Ground is now more secure.
The new deal, set to be finalised in the next few weeks, would see a new 250-year lease where Nottingham Forest and the NCC would develop the area adjacent to the Grantham Canal.
There are also future plans to expand the City Ground to a capacity of around 40,000 by re-developing the current Main Stand.