Rumours in the press were mounting that the former Palace forward could be loaned back to Palace for a season after Selhurst Park boss Steve Kember revealed that Blues boss Steve Bruce had promised to help out the Eagles with loan signings.
However, Morrison's agent Neil Fewings told icsouthlondon.co.uk: "I can categorically state Clinton will not return to Crystal Palace.
"He is a Premiership player and it would be seen as a step down."
Morrison, Blues record signing prior to the arrival of David Dunn from Blackburn this week, returned to training early this week in a bid to be fit for the start of the new season after missing the last two months of last season with a dislocated shoulder.