Hammers manager Manuel Pellegrini wanted Loftus-Cheek to bolster his struggling midfield for the second half of the season.
But Chelsea manager Maurizio Sarri has put a block on Loftus-Cheek going anywhere on loan this season.
After a slow start to the season that was hampered by injury, the 22-year-old has now started to break into Sarri’s side on a more regular basis.
After a good World Cup it looked like Loftus-Cheek might have to go back out on loan, with Crystal Palace again interested, but now the powerful Chelsea academy graduate looks set to stay at Stamford Bridge for the season.
Loftus-Cheek initially forced his way into Gareth Southgate’s World Cup plans with an impressive loan spell at Selhurst Park last term.
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West Ham also tried to take Loftus-Cheek on loan last summer but were knocked back then as well.
The midfielder made the headlines a fortnight ago when he scored a hat-trick as Chelsea defeated
BATE Borisov 3-1 at home in the Europa League.
The teams meet again tomorrow in the Europa League.
Former Everton midfielder and now pundit Leon Osman has questioned the Chelsea man.
“He’s done the right thing when he’s been given the opportunities,” Osman told BBC 5Live.
“He’s been playing very well and scoring goals.
“He’s done everything he can to show the manager that he’s still there and wanting to break into the team on a more regular basis.
“I agree with Sarri, I just don’t think he’s ready.
“You can it tactically or maturity but for one of those of those central roles where Jorginho, Kante and Barkley are now playing there is a discipline you need.
“Yes you want to show what you can do going forward but you’re the protection for the back four.
“He’s probably not quite there yet.”
Loftus-Cheek has made just three appearances in the Premier League this season.