The burly centre-half only left the City Ground for the King Power Stadium in January 2012.
He settled quickly after crossing the East Midlands divide and was handed the Foxes' captaincy ahead of the 2012/13 campaign.
Morgan is, however, a Nottingham native who graduated out of Forest's academy ranks to become a mainstay in their starting XI.
He spent 10 years in the senior set-up on Trentside, making over 400 appearances for the Reds.
Billy Davies is understood to be keen on returning him to his roots, now that Forest have resolved the financial issues which led to his sale.
Leicester are, however, reluctant to part with the commanding defender and have no intention of entering into negotiations with their local rivals.