The plan has been greeted with anger by campaigners, with the Archbishop of Canterbury, Dame Judi Dench and Bill Bryson among signatories of a letter calling the sale "unconscionable".
But the government says nature and rights of access will be protected.
The plan could lead to the sale of all land in England owned by the Forestry Commission, totalling 2,500 sq km.
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I tend to believe our woodlands would be better managed in the private sector anyway”
End Quote Joe Fielding Chartered forester
Forests in Scotland, Wales and Northern Ireland are not affected.
The Archbishop and nearly 100 other people in public life wrote to the Sunday Telegraph this past weekend expressing their horror at the idea.
"We, who love and use the English forests, believe that such a sale would be misjudged and shortsighted," they wrote.
"It is our national heritage. We are an island nation, yet more people escape to the forest than to the seaside."
An opinion poll at the weekend found 75% of respondents were opposed to the sell-off.
'No compromise'
The government is playing down fears that rights of access and biodiversity would be damaged by the sale.
"We will not compromise the protection of our most valuable and biodiverse forests," said a spokeswoman for the Department for Environment, Food and Rural Affairs (Defra).
"The Forestry Commission has and will play an important role in protecting and expanding the trees, woods and forests in England."
Red squirrel The government insists biodiversity dependent on forests will be safeguarded
Defra also points out that the Forestry Commission owns only about 18% of England's forests, with 69% already in private hands and regulated by a number of laws covering nature protection, logging, access and development.
The details have yet to be announced; but in broad terms, the government has said such safeguards will apply to any forests sold, with extra protection for ancient woodlands such as the Forest of Dean, the New Forest and Sherwood Forest.
Fifteen percent of the commission's land is already being sold off, with the aim of raising £100m; the consultation covers procedures for selling off the remaining 85%.
BBC News understands people and organisations will be invited to comment on a range of options, including straight commercial sales, creation of non-profit or mutual bodies to manage forests, and mixed models of ownership under public-private partnerships.
The Woodland Trust, a charity dedicated to conservation of traditional forests, said it had concerns about safeguards being eroded.
"Virtually all Forestry Commission lands are protected in terms of pedestrian access; but at the moment you can ride your mountain bike or horse through most of their land, and those rights aren't protected by law," said a spokesman.
The charity is particularly concerned about forests that were modified 50-60 years ago, when conifers were planted into traditional woodland areas.
"If all of that is harvested in one go, it'll destroy the sites; but if it's harvested sensibly over 20 years or so we could recreate the ancient woodland that is our most important habitat," said the spokesman.
In addition, selling all the commission's commercial timber forests will remove the source of its income - which is used to fund conservation work, he said.
Balance of interest
One growth area in recent years has been "hobby woods" - patches of forest, sometimes just a few hectares, bought and maintained by private individuals.
They can be bought through websites such as Woods 4 Sale, whose managing director Joe Fielding said many people regarded woodland as a more reliable investment than putting money in banks or financial instruments.
"A huge variety of people are buying them, from pension funds to commercial investors who are buying the timber lands, to individuals and companies," he said.
"Forestry Commission lands are very different, and different woodlands will suit different people."
A chartered forester with over 20 years experience in the field, Mr Fielding suggested the sale could actually be positive for the country.
"The Forestry Commission has done a pretty poor job of managing some of its land, and I tend to believe our woodlands would be better managed in the private sector anyway," he said.
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