Mark Wagh put Nottinghamshire in charge with an assured 131 to set up a match winning opportunity on the final day.
Lancashire closed on 22-1 in their second innings, needing to post an unlikely 393 to earn victory themselves.
Wagh hit a six over midwicket to bring up his second LV County Championship century of the season with support from David Hussey who shared a 141 run stand for the fourth wicket.
Hussey was bowled for 74 when Glen Chapple’s delivery stayed low and Wagh fell to a diving catch from Mark Chilton at mid-on.
“Mark Wagh was outstanding today and he played a very fluid innings to put us in a strong position,” said Notts Director of Cricket Mick Newell.
“We were stuck a little bit when David Hussey came to the wicket at 70-3 but once he’d got himself in, we were able to press on and play with some freedom.
“We may have chanced it a little bit in declaring but we have to back ourselves when we create opportunities to win games.
“There’ll be other situations where we’d prefer to secure the best draw that we can but it’s a flat wicket and we wanted to give ourselves as many overs as possible to try and bowl them out.
“If they chase the total down from here then I’d have to say fair play to them but if we bowl with the discipline that we showed in the first innings then we’ve got a chance to win the game.”
Bilal Shafayat (30) and Chris Read (21 not out) were the other contributors with Will Jefferson, Samit Patel, Ali Brown and Mark Ealham failing to reach double figures.
Earlier, Ealham and Ryan Sidebottom each took two wickets to restrict Lancashire to a first innings total of 285.
Karl Brown and nightwatchman Kyle Hogg will resume with Lancs on 22-1 after Horton was run out attempting an ill-judged quick single. Wagh had time to field to Read who removed the bails to cap a solid day for Notts.