Morton made his debut for Liverpool last season, going on to make in total seven appearances, including two in the Champions League.
He is highly rated by Liverpool boss Jurgen Klopp and could be sent out on loan, amid interest from Blackburn and Oxford.
It has been suggested a move to Oxford could see him play more football than joining Blackburn, but the Ewood Park outfit have been moving quickly to loan Morton.
But no deal is happening now as Klopp wants to keep the youngster for the time being as the Reds’ squad has been racked by injuries.
The Reds are facing injuries to stars like Diogo Jota, Alisson and midfielder Alex Oxlade-Chamberlain and thus Liverpool have taken the decision to not let Morton leave right now.
It remains to be seen if Blackburn will still be able to loan Morton, or whether Oxford can use the lull to force themselves firmly into the mix.
Liverpool are claimed to be impressed with how Blackburn handled Harvey Elliott during his loan spell at Ewood Park.