The Norwegian central defender has struggled to break into the first team ahead of Michael Dawson, Des Walker and Chris Doig.
Hjelde, 30, told the Nottingham Evening Post: "They told me they would be offering me a contract before the West Ham game and, last Tuesday, they said they couldn't offer me a contract."
He also revealed that Sheffield Wednesday showed an interest in him before Christmas but Forest turned down the offer of a loan switch.
'Big Jon' is believed to be one of the top earners at The City Ground and he could return to his native Norway in June.