According to the Mirror's Ben Burrows, reports in Spain are once more suggesting that a move is set to take place as the Gunners search for backup options for Frenchman Olivier Giroud.
The report reads:
Olivier Giroud has carried the striking burden at the Emirates almost single-handed this season, so any move for Spanish Under-21 international Morata would provide much needed depth up top.
It is unknown whether Madrid would be willing to let him go permanently however, with him seen as a star of the future with Los Blancos.
Earlier this month Wenger ruled himself out of a move for the youngster, but if reports from Spain are to be believed he could be back on the radar.
Morata has been a regular scorer at B-team level for the past three seasons in the Spanish second tier, despite having only recently turned 21. At youth international level, also, he has a fine record at major tournaments.
However, despite his excellent pedigree, chances have been hard to come by at the Bernabeu for the La Fabrica product, with Morata starting just once in La Liga since the start of the season.
With Karim Benzema, Cristiano Ronaldo and Jese Rodriguez all competing for just one central striking berth, it would seem unlikely that his prospects of starting will improve as the season progresses towards its conclusion.
At Arsenal, though, he may be able to experience semi-regular football at a high-level, with the number of competitions the Gunners are still competing in set to demand that squad rotation must be carefully managed.
What he can offer Wenger is a natural predator off the bench when a goal is required, as well as a mobile and intelligent alternative were Giroud to be rested.
Inexperience would be a limiting factor in what games Morata would be afforded initially, but Wenger has consistently shown that he is not afraid to throw young players into big games if they prove themselves ready for first-team football.
Given the guidance the Arsenal boss can offer, a loan deal could be beneficial for all parties involved. However, if the terms of a potential permanent switch can be agreed then the Gunners could have a bargain on their hands.
Morata has much to prove, but all signs point to a player with the potential to be one of the leading penalty box strikers of his age level.