The 19-year-old forward was tipped by some for first-team action after breaking into the Liverpool first-team on the club's preseason tour of the United States in the summer of 2012.
A brief loan spell at Rotherham United earlier this year came to nothing, and Morgan returned to Anfield after just one league appearance.
He never featured for the Reds in the Premier League - the sum total of his first-team career at Anfield was a handful of Europa League outings.
But the England under-19 international was tipped for big things at one point. Anfield boss Brendan Rodgers praised his attitude and work ethic on tour, while Robbie Fowler had high hopes after watching him in action for the under-21s.
He was prolific for Liverpool's reserve and youth teams but couldn't quite make the step up. Raheem Sterling, Suso, Andre Wisdom and Jordan Ibe have all stepped up to Rodgers' squad and made impacts before Morgan.
And the report claims his Anfield career could now be over, with Championship side Blackburn Rovers reportedly keen to snap him up.