Spanish striker Morata arrived in Italy last summer on a one-year loan deal.
Juventus had three options this summer – to let Morata go, extend the loan deal by a year, or sign him permanently.
And Goal report that the Old Lady will keep him on for another year and pay £8.5m to the Spanish champions.
He scored 20 goals in 44 games for Juventus in what was a disappointing season for the team.
Manager Andrea Pirlo was sacked as they let go of their Serie A crown and just about sneaked into the top four.
Ex-boss Max Allegri returned as manager last week and he’s worked with Morata before in Turin.
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Juventus ‘dream’ to bring Paul Pogba back from Man Utd handed huge boost after Max Allegri’s return as boss
Sunni Upal
Updated: 11:33, 29 May 2021
JUVENTUS dream to bring back Paul Pogba could be boosted by Max Allegri s return as manager, reports say.
The 53-year-old returned on Friday after Andrea Pirlo was sacked by the Old Lady.
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Paul Pogba has just one year left on his Man Utd contractCredit: EPA
Pirlo paid the price after Juventus lost their Serie A crown to Inter Milan and just about scraped into the top four.
Fan-favourite Allegri won five straight league titles in Turin and took Juve to two Champions League finals.