Hazelnut commonly propagated through layering or by seeds. But seedling obtain from fresh seeds grows very well.

Collection of seed materials: Collect sufficient well matured nuts from healthy tree at the end of summer. Nuts should be free from insect , diseases and physical damage.

Remove dormancy: Chill the seeds for few months to remove dormancy.

Stratification: Remove the hard coat by rubbing with fine-grain rasp till you see pale patches.

Selection: Soak the stratified seeds in cold water for one day. Select the seeds which sink.

Sowing: Select suitable size pot (usually 8 inch pot) and fill with equal proportion of well decomposed compost and coarse sand. Sow the seed up to 1 - 2 inch.

Cover the pot with plastic bag and place the pots in suitable place (temperature should be between 32 - 40 F)

Maintain proper moisture in the pot.

For detail information please follow the below link
http://homeguides.sfgate.com/grow-haz...