The midfielder is a product of the youth academy at Villa Park, but he has failed to establish himself in the first team picture.
Osbourne has made just three starts in Claret and Blue this season, all of which were in cup competitions. He has also made three substitute appearances.
The 21 year old has been involved in some of Villa's poorest performances, notably against Q.P.R in the League Cup and MSK Zilina in the Uefa Cup.
And he has been lambasted by fans at times, with many not regarding him good enough to make it in the Premier League.
But, Osbourne is only young and a spell with Billy Davies at the City Ground may be just what he needs.
The tenacious tackler is set to be thrust into a relegation dogfight, with Forest sitting one place above the relegation zone.
But, if he gets to grips with the Championship football immediately, the Villa youngster could be a good asset.