Paterson, who has found first-team opportunities limited at the City Ground in the past 12 months, had also been linked with Burnley and Leeds United.
The 23-year-old joined Forest from Walsall in 2013 and has scored 15 goals in 66 appearances for the East Midlands outfit.
Paterson has become Huddersfield's eighth signing of the summer.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Ipswich TownIpswich | 43 | 26 | 11 | 6 | 85 | 53 | 32 | 89 |
| 2 | Leicester CityLeicester | 42 | 28 | 4 | 10 | 79 | 38 | 41 | 88 |
| 3 | Leeds UnitedLeeds | 43 | 26 | 9 | 8 | 76 | 34 | 42 | 87 |
| 4 | Southampton | 42 | 25 | 9 | 8 | 84 | 54 | 30 | 84 |
| 5 | West Bromwich AlbionWest Brom | 43 | 20 | 12 | 11 | 66 | 42 | 24 | 72 |
| 6 | Norwich CityNorwich | 43 | 21 | 8 | 14 | 76 | 60 | 16 | 71 |
| 7 | Hull City | 42 | 18 | 11 | 13 | 62 | 54 | 8 | 65 |
| 8 | Coventry CityCoventry | 42 | 17 | 12 | 13 | 66 | 52 | 14 | 63 |
| 9 | Middlesbrough | 43 | 18 | 9 | 16 | 61 | 56 | 5 | 63 |
| 10 | Preston North EndPreston | 43 | 18 | 9 | 16 | 56 | 60 | -4 | 63 |
| 11 | Cardiff CityCardiff | 43 | 18 | 5 | 20 | 48 | 60 | -12 | 59 |
| 12 | Bristol City | 43 | 16 | 10 | 17 | 50 | 46 | 4 | 58 |
| 13 | Sunderland | 43 | 16 | 8 | 19 | 52 | 50 | 2 | 56 |
| 14 | Swansea CitySwansea | 43 | 14 | 11 | 18 | 53 | 62 | -9 | 53 |
| 15 | Watford | 43 | 12 | 16 | 15 | 59 | 58 | 1 | 52 |
| 16 | Millwall | 43 | 13 | 11 | 19 | 42 | 55 | -13 | 50 |
| 17 | Blackburn RoversBlackburn | 43 | 13 | 10 | 20 | 57 | 71 | -14 | 49 |
| 18 | Plymouth ArgylePlymouth | 43 | 12 | 12 | 19 | 58 | 66 | -8 | 48 |
| 19 | Queens Park RangersQPR | 43 | 12 | 11 | 20 | 40 | 57 | -17 | 47 |
| 20 | Stoke CityStoke | 43 | 12 | 11 | 20 | 41 | 60 | -19 | 47 |
| 21 | Birmingham CityBirmingham | 43 | 12 | 9 | 22 | 48 | 64 | -16 | 45 |
| 22 | Huddersfield TownHuddersfield | 43 | 9 | 17 | 17 | 47 | 70 | -23 | 44 |
| 23 | Sheffield WednesdaySheff Weds | 43 | 12 | 8 | 23 | 36 | 67 | -31 | 44 |
| R | Rotherham UnitedRotherham | 43 | 4 | 11 | 28 | 32 | 85 | -53 | 23 |
| > Championship Full Table | |||||||||
