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Published 10:19 21 Jan 2019 GMT
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The Derry native is currently playing for Stoke City, after joining the Championship side from West Bromwich Albion for £5m last summer.
McClean was a regular under Gary Rowett but has been on the bench since new manager Nathan Jones took charge.
The new Stoke coach found success using a midfield diamond when he was the manager of Luton Town, which suggests that he doesn't see a place for McClean in his Stoke side.
However, O'Neill could offer him an escape route.
According to Football Insider, the new Forest manager wants to sign McClean this month, with both the player and O'Neill keen on getting the transfer completed.
Stoke may also be open to the deal to help add transfer funds.
O'Neill lost his first game as Forest manager on Saturday afternoon, falling to a 1-0 defeat to Bristol City at the City Ground.
McClean came on as a second-half substitute as Stoke beat Championship leaders Leeds United 2-1 at the bet365 Stadium.Football

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