The 30-year-old, who has been told by Gary Megson he can leave the Hawthorns, is also supposedly interesting Cardiff City who have funds following the sale of Robert Earnshaw.
Leeds have already had a £700,000 bid rejected and Forest boss Joe Kinnear is unlikely to join a bidding war for the former Baggies captain.
A West Brom spokesman said: "None of the offers have matched the valuation of Sean which the club feel appropriate,"
Gregan is believed to fancy a move back to Preston who could also fund a deal following the sale of Ricardo Fuller to Portsmouth.