Morrison is currently on loan at Cardiff City, but he has failed to make an impact in the Championship and Sam Allardyce will not welcome him back into the squad.
Instead, the attacking midfielder will be told to train with the club's development side in January, as West Ham plot to move him on.
Morrison remains one of the Hammers' most able players, but his attitude has led to him falling out of favour and Allardyce is happy to allow him to leave at a cut-price.
Morrison has an £18 million release clause in his contract, but it is understood that West Ham would be willing to let him go at a fraction of that price.
The 21-year-old made two appearances for the Hammers at the start of the season before heading out on loan to Cardiff.
Since joining the Championship side he has played seven times, but hasn't performed as expected.
Morrison's contract at West Ham expires in the summer and if the club are unable to find a buyer in January they may simply pay-off the rest of his deal to get him off their books.
Cardiff are not thought to be interested in making Morrison's loan move a permanent one.