The French defender, who played for Forest during their Premiership days, ended speculation about his future at noon today.
He told the club's official website: "It would have been really difficult to have started again in a new city or town in England and I must admit I did consider going back to France if I failed to reach an agreement with Forest."
Louis-Jean has lost two of his closest friends at Forest following the departure of Jim Brennan to Norwich and Jack Lester on a free transfer.