Reports suggest that Forest's offer was in the region of £800,000 for the 19-year-old striker.
Walsall chairman Bonser told his club website: To be frank, the offer was derisory. I made clear that the offer fell a long way short of our valuation, and was totally unacceptable to us."
Although Bonser admitted that Fryatt may have to be sold, he added: "It is doubtful if he would want to move to another League One club, such as Nottingham Forest."