Neither the telnet protocol, nor the implementations (Linux, Windows, etc) support port forwarding. There are two possible answers to your question.
1) Generally when people refer to port forwarding these days they mean ssh port forwarding. ssh supports forwarding either direction (e.g. when someone telnets to your local machine, redirect them to a remote machine, or when someone telnets to a remote machine, redirect them to a local machine.) There are lots of examples on the internet on setting up ssh port forwarding, but note that if you want to forward port 23, a privileged port, you will need to be root.
2) You can telnet from host A to host B, then telnet from B to C. This is not strictly port forwarding, but accomplishes the same task