What West Ham insiders have revealed about Morato transfer as 'big penalty' emerges

West Ham United's Morato has been exceptional since signing on loan from Nottingham Forest.

The Brazilian has taken the Championship by storm, proving to be a shrewd pick-up by the Irons and Nuno Espirito Santo.

Supporters have been here before with a loan player, notably Axel Disasi from last season.

However, West Ham have learned from their mistakes and have agreed an option-to-buy for the impressive 25-year-old defender.

Right now, things are heading toward the E20 outfit looking to activate that option and keep Morato permanently.

But new details have now emerged on what would happen should they decide not to take up their option.

What will happen if West Ham do not permanently buy Morato?

West Ham do have an agreement in place with Nottingham Forest over Morato remaining at London Stadium on a longer-term basis.

But the loan move does not include an obligatory or conditional clause to make his transfer permanent, rather simply just an option.

Nonetheless, it does seem Forest have included some insurance over Morato's loan deal, and are set to benefit no matter what.

According to what West Ham sources have told Hammers News, should Morato return to the City Ground, the Irons would face "a big penalty."

In that case, the move will ultimately end as what is described as a "very expensive straight loan."

The information shares that West Ham will keep Morato at London Stadium if they bounce back to the top flight.

And with the Irons sitting in the top two, they are currently on track to achieve those ambitions.

The internal feelings over Morato at West Ham

West Ham’s thinking over Morato also appears to be positive, with those within the Hammers camp already impressed by what the defender has shown since arriving on loan.

The Brazilian is believed to be playing at a tier currently below what his qualities are, with him described as a "Premier League-level" defender.

For West Ham that is a significant boost as should they get promoted he will be one player they will not seek to upgrade on.

So, Morato will slot straight into their plans for the top flight and provide Nuno with a ready-made option at the back.

And hopefully at the end of the season, it is a transfer fee paid out to Forest, rather than that "penalty."