The West Ham prospect is currently on loan at Borussia Monchengladbach
Oxford, who can play as a centre-back or a defensive-midfielder, is currently on loan at Borussia Monchengladbach and has made just three Bundesliga appearances this season, although two of those have come this month.
As reported by BBC Sport, West Ham are prepared to exercise their option to recall Oxford in January and will sell him to RB Leipzig for a fee that could rise to €19 million (£16.88 million) plus add-ons.
The 19-year-old, who has been capped by England at various youth levels, has long been seen as a potential star for West Ham, but it now appears that his future lies away from the club.
In 2015 Oxford became West Ham's youngest ever player when he played against Lusitanos in a Europa League first qualifying round, first leg fixture.
He went on to produce an outstanding performance as West Ham beat Arsenal on the opening weekend of the Premier League season but could now leave the club having made just 14 senior appearances.