Peltier’s move was finalised early yesterday afternoon with the defender visiting Forest’s training ground and meeting with owner Fawaz Al Hasawi.
But by late afternoon, Forest announced that the deal had fallen through, much to the surprise of United, with the paperwork having been completed at the Leeds end.
Speculation has suggested that the collapse of Forest’s bid to appoint ex-Whites chief Neil Warnock as their new boss after the sacking of Billy Davies might have been the reason for the club pulling the plug on the Peltier deal.
Warnock signed Peltier from Leicester City during his time as Whites boss in the summer of 2012, subsequently making him captain.
But Forest were believed to be interested in signing Peltier ahead of Davies’ exit, with a bout of tonsillitis, which ruled him out of the Whites’ game with Millwall, ensuring he didn’t head to the Midlands late last week.