Kightly was all set to make the temporary switch to the City Ground in order to gain match sharpness.
Wolves boss Mick McCarthy said: "There was interest. I'd spoken to Steve McClaren about Michael Kightly.
"But I've no idea what happened because I was open to it and so was Kightly."
McCarthy played down reports that another winger in Adam Hamill was also going to join Forest on loan.
He said: "They wanted a winger and we've got Kightly, but Adam was never in line to go."
Source: Team Talk
Source: Team Talk