Reds boss Stuart Pearce has been in talks with Hull for several days and on Thursday morning an agreement was reached for Ince, 22, to move to the City Ground on a deal until December 28.
Pearce is keen to breathe new life into his side’s promotion push, following a seven-match winless run in the Sky Bet Championship, and winger Ince will go straight into the Forest squad for Saturday’s trip to Huddersfield.
Ince, who Pearce knows well from his time as England Under-21 manager, joined Hull from Blackpool in the summer but has found first-team opportunities limited at the KC Stadium and has not been involved in Steve Bruce’s squad for the past month.
Ince is a proven quality at Championship level, having scored 18 goals for Blackpool during the 2012/13 season - a campaign which saw him named the Football League Young Player of the Year.
Meanwhile, York City manager Russ Wilcox is understood to be on the verge of bringing Deon Burton to Bootham Crescent on a loan deal from his former club Scunthorpe.