'Messy, horrible - Forest don't want this and Gibbs-White doesn't either'
Forest are considering legal action against the north London club as it is believed they are looking at whether a specific confidentiality agreement in the £60m release clause in Gibbs-White's contract has been breached.
"It is certainly one that Forest could have been doing without and one that has got the fans worried," Fray said on the Shut Up And Show More Football podcast.
"On the back of the exit of Anthony Elanga to Newcastle, fans were willing to accept that a big sale might be necessary this summer because that's life in the days of PSR and the Premier League. Although disappointed with that possibility and subsequent reality, people accepted that.
"But, to have this right on the heel of the Elanga deal caused a lot of concern among supporters, and still is. It is a moving situation and things may change quickly - but it is messy, it is horrible, Forest don't want to be there in that situation. I'm fairly sure Gibbs-White doesn't either."
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Gibbs-White returned to training with Forest this week, adding to the speculation surrounding his future.
"It's going to be interesting to see how it plays out from here," added Fray.
"Most thought it would be ironed out and the transfer go through. Not many were expecting him back at training and here he is. That is another twist in the story.
"Forest have set their stall out that they aren't looking for a quick resolution. They want to keep him."
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