Doncaster Rovers chairman John Ryan confirmed in an interview with BBC Radio Nottingham that he would not stand in the way of his highly-rated manager, if Forest turned to him to be Gary Megson's permanent successor although no such move has been at made at present.
Penney has taken Rovers from the Conference to League One during his time at Belle Vue, as well as seeing his side claim some notable Premiership scalps in cup competitions.
He is not among the favourites at present for the City Ground job, having been linked more with a move to Derby County as a former Rams player.