The teenager was supposed to head out to Charlton until the end of the season.
The report claimed that struggling Championship side Charlton Athletic had 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.
But the deal never happened, with Charlton boss Jose Riga pulling the plug on the excellent looking deal.
"There was the situation with Charlton, we thought it was deal done.
“They pulled out at the last minute. It is not important why they did it and to be honest with our situation I am glad he didn’t go there.
“But that loan would do him really good to play in the Championship, it would have been great.
“He needs that. Ok, he can play for us but we have spoken to the young players about loans, we have five or six of them, although Oxford is above them.”
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.
But he has been used sparingly since and has been working on his physical aspects and playing at under-21 level.
But he had to come into the team v Tottenham in midweek and with Winston Reid, James Tomkins and James Collins all injured he is set to feature v Everton this weekend.