The commanding centre-half remains on the Foxes' books after they blocked interest from East Midlands rivals Nottingham Forest.
The Reds were keen to return Morgan to the City Ground for a second spell, having nurtured him through their academy ranks and turned him into one of the most complete defenders outside of the Premier League.
Forest were forced to offload Morgan at the height of their financial struggles, but are now working under the ownership of the wealthy Al-Hasawi family.
They were prepared to spend more on the 29-year-old than they sold him for, but Leicester stood firm - much to the delight of Pearson, who considered the saga to be an unwelcome distraction.
He said: "There is always someone who wants to destabilise.
"I have had to comment on speculation in the past when it was not really relevant."
With Morgan still at the King Power Stadium, team-mate Jeffrey Schlupp believes he is capable of skippering Leicester back to the big time.
He said: "Everyone knows how good Wes Morgan is. To have someone like him next to me and talking to me really helps me with my defensive positions.
"When you are playing alongside him, he always covers you and he gives me freedom to go forward.
"Is Wes the difference between staying in this league and going up? Yes, definitely.
"We are solid at the back, which helps. The less goals we concede, the more games we will win."