According to a report published by the Sun, West Ham have received a transfer blow after it has been confirmed that their transfer target William Carvalho could sign a new contract with Sporting Lisbon.

Carvalho was a priority target of the Hammers during the summer but in the end they were left frustrated after failing to reach agreement over a fee for the player.

The collapse of the deal also led to animosity between the clubs with Sporting claim that the Hammers in-fact made no official bid, while the East London club claimed the contrary.

Many fans of West Ham had been hoping that the club would revive their interest in Carvalho and possibly sign him in January.

Sporting now look likely to want to keep their prized asset for at least one more season. Reports from Portugal have stated that Sporting have approached the player with an offer of a new contract.