Die Fohlen and RB Leipzig both showed an interest in signing the England Under-20 international on a permanent deal.
David Moyes is keen on strengthening his midfield and glowing reports from the youngster’s stay in the Bundesliga convinced the Scot to reject Leipzig’s offer of a permanent deal.
Leipzig were ready to offer a fee in the region of £8m initially which would more than double with bonuses.
Oxford was sent to Germany on loan after former boss Slaven Bilic wasn’t impressed by the progress the 18-year-old made during his first spell with the club.
Monchengladbach have been impressed by the progress he made on and off the pitch during his time with the club.
Moyes is also keen on bringing Borussia Dortmund attacking midfielder Andre Schurrle to the London Stadium. The 27-year-old was previously with Chelsea but left, frustrated at the lack of first-team opportunities.
The Hammers are struggling for goals and hope the Germany international can bring an attacking spark to the side. Schurrle is determined to find regular first-team football to ensure he features in Joachim Loew’s World Cup finals squad next summer.