The report claims that the struggling Championship side Charlton Athletic have secured a deal for the player until the end of the season.
The two clubs have a good working relationship and West Ham decided it was worth throwing him into a tough situation at The Valley to see how he copes with the pressures of first-team football.
The 17-year-old centre-back made waves on the opening day of the season when he featured for West Ham against Arsenal at The Emirates.
The then 16-year-old played out of position in holding midfield but put in an imperious performance in the heart of the field. West Ham went on to win that game at The Emirates and Oxford's ability to shackle German international and player of the season candidate Mesut Ozil was lauded in the press and turnstiles.
Hopefully some time in the second tier can help round Oxford into the professional that West Ham hope he can be.