“I’m very excited to have a new adventure with this club,” said Boly.
“I spoke to Morgan Gibbs-White [former team-mate at Wolves] before I came and I’d seen the spirit of the team and he said I’d love it because it is a big club – the fans and everyone wants to go in the same direction.
“I watched the game against Tottenham and the spirit of the team really impressed me. I was listening to the fans in that game and they were unbelievable.”
Forest have also agreed a deal, believed to be worth about £4m, for Blackpool winger Josh Bowler.
The 23-year-old has scored two goals in seven Championship games this season.
Boly spent four years at Wolves, making 147 appearances in all competitions.
Forest, who are playing in the Premier League for the first time in 23 years, haven taken four points from their first five games, but were thrashed 6-0 at Manchester City on Wednesday night.
The result meant they had conceded 11 goals so far and manager Steve Cooper wanted further defensive reinforcements.
Boly will be available for Forest’s game against fellow newly promoted side Bournemouth on Saturday (15:00 BST).
‘Forest will be seriously scaring people’
It has been a busy summer for Cooper’s side with a complete rebuild of the squad who earned promotion being undertaken.
But it’s been a window of business which could be crucial for helping them do well in the Premier League
“Forest will be fine that is for sure. They have done fantastic business. Sometimes you can buy too many players but Forest have brought in the right players,” said Former Crystal Palace striker Clinton Morrison.
Ex-Liverpool defender Jamie Carragher said strengthening in the market “does not guarantee anything” but there will be a “real fear for other clubs”.
“Forest are bringing players off the bench who cost £40m – they have real strength in depth and it will be a big worry for teams who expect promoted teams to go down.
“I think Forest will be seriously scaring people.”
Former Forest striker Robert Earnshaw added: “They needed to build a squad that represents them in the Premier League. I think they are doing it right. Will they stay up? I think so.”
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