He has appointed Peter Grant to the role of Deputy Manager, while Jimmy Floyd Hasselbaink has left his role as First Team Coach.
Grant worked alongside McLeish at both Birmingham and Villa and The Reds manager is delighted to have him on board.
He told us: “He’s a workhorse and his life is soaked in football. He’s also had massive experience of English football, having worked here for many years.
“I’ve known him for a long time and he’s a person I trust and respect enormously. I am sure he will do an excellent job for Nottingham Forest Football Club.”
Grant, 47, made his name as a midfielder with Celtic, clocking up more than 360 league appearances and winning a host of honours. He was also capped twice by Scotland.
He also served Norwich, Reading and Bournemouth as a player before moving into the world of coaching.
Grant had a spell as assistant to Alan Pardew at West Ham and in October 2006 was appointed manager of Norwich.
He was in charge at Carrow
Road for a year and also worked for West Brom and Celtic before linking up with McLeish at Birmingham.
Hasselbaink, meanwhile, was appointed to his role in the summer of 2011. The Club would like to thank him for his efforts.