The report claims Moyes feels Powell could handle a tougher challenge after impressing at the DW Stadium, with 'several' Premier League clubs keen to take him from the January transfer window.
Powell has bagged five goals in 15 appearances for the Latics since his loan move from United in August. But the agreement is set to end in January.
Wigan boss Owen Coyle is desperate to extend the loan - and is close to wrapping up a deal to bring Powell's United teammate Will Keane to the club as well - but Moyes may decide his development would be best served in a higher division.
The former-Crewe star can play in central midfield or further forward, and has been earmarked as a future United star by Moyes.
The club is reportedly hopeful this season spent on loan will help Powell return to United in the preseason in the right shape to fight for a first-team spot next term.
The 19-year-old made two league appearances under Sir Alex Ferguson after joining from Crewe in the summer of 2012, scoring against Wigan last August.
But he spent the rest of the season in the reserves, before joining the Latics at the beginning of this campaign.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: http://gms.to/writeforgms