The 21-year-old follows his compatriot Gustavo Scarpa to the City Ground on a six-and-a-half-year deal, after Palmeiras finished top of the 2022 Campeonato Brasileiro Série A.
Linked with Arsenal last summer, and Monaco during this window, the defensive midfielder joined the Brazilian champions in 2018 from PFC Cajazeiras and made his senior debut in September 2020.
Despite his age, Danilo dos Santos de Oliveira has already completed three senior seasons and is regarded as one of the best talents in Brazilian football.
An April 2022 feature on Goal.com compared him to N’Golo Kante: ‘There is certainly plenty of the France star in Danilo, in the way he shuttles across the pitch and moves along possession in impeccable fashion; but the younger man also possesses a secret weapon, a fantastic dribbling technique unusual in players of his position, which allows him to shake off markers and start Palmeiras’ attacks in the blink of an eye.’
Danilo said: “I’m really happy to be fulfilling my dream of playing in the Premier League and playing for Nottingham Forest.
“I learnt a bit about the history of the club and saw they had won two European Cups. I spoke to Gustavo Scarpa as well, and he told me that Nottingham is a great city and Forest have a quality squad with really good staff.
“I will show a lot of determination and a strong desire to win and will always look to do my best on the pitch to achieve positive results. I’m excited about getting started and meeting my new teammates.”