The West Brom midfielder has been trying to shake off the injury for some time and will now undergo rehabilitation work rather than link up with the rest of George Burley's squad.
Morrison spent three weeks on the sidelines before returning for the Baggies' 2-2 draw at Hull City nine days ago.
He was not risked during the midweek FA Cup defeat to Burnley but did return as West Brom lost 3-2 against Newcastle on Saturday.
Tony Mowbray has now agreed with Burley that it would be best for Morison to stay at the club to build up his fitness.
Mowbray said: "I spoke to George Burley last night to explain James' situation.
"We've had to ease James back in and he's only had a few days training since his injury.
"He needs to spend time at the club strengthening up the areas of his leg in which he's been tight in recent weeks."
Meanwhile, Albion have received international clearance for on-loan Argentine winger Juan Carlos Menseguez.
The San Lorenzo player is now eligible to make his debut against Fulham at
Craven Cottage on 22nd February.