Reid, 26, had entered the final season of his contract at Upton Park, and the likes of Arsenal, Liverpool and Manchester United were all understood to be keeping tabs on the situation, in preparation for a potential approach in the coming transfer window.
The Gunners were even said to have made a late bid for the New Zealand captain at the summer deadline, and West Ham boss Sam Allardyce admitted only last month that he wasn’t sure whether the club would be able to keep hold of their star centre-back.
‘It is not only a concern for me, but it is a concern for the owners,’ he said.
‘There's been talk about Winston and his contract for a pretty long period now.
‘It's not that he doesn't want to stay. It's about the financial remuneration and whether they can come to the right level, give or take or negotiation that gets us to a point where he will say, “yes”.
‘That's always the hard bit. It's always a difficult negotiation. If we could tie him up tomorrow then I think the owners particularly and myself would like that and not have it lingering.
‘Hopefully sooner rather than later that will come to a conclusion and a positive one. I can only hope that is going to be a positive result in the end.’
Reid has played 115 games for West Ham since arriving from Danish club FC Midtjylland in August 2010, following an impressive World Cup campaign, and was named Hammer of the Year for the 2012-13 season after helping the side to a 10th-place finish in their top-flight return.
With Arsenal, Manchester United and Liverpool all needing help at the back, he could have proven an excellent low-cost addition, but it now looks like the three will have to look elsewhere for reinforcements.