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The Spaniard was heavily linked with a move to the Premier League last summer before Real Madrid activated their buy-back clause following his spell with Juventus.
According to Spanish publication Diario Gol, Real president Florentino Perez is ready to sanction a deal for the striker after being angered by his attitude.
Morata is understood to be frustrated at a lack of game-time and he hasn’t taken well to sitting on the bench of late.
And should the situation continue, Perez will allow him to leave if an offer of £51.5m is received.
The report claims Arsenal are interested in signing him with the 24-year-old already receiving offers from the Premier League.
Chelsea are also thought to be keeping tabs on Morata with Antonio Conte a big fan of the forward.
Morata, who is under contract with Real until 2021, has netted nine goals in all competitions for Zinedine Zidane’s side this term.