The 18-year-old defender joined the German side on a two-year loan deal this summer but has yet to play a single minute of competitive football in Gladbach. football.london understands the two sides have agreed to terminate the loan deal in December of this year and Oxford will return to London.
It follows on from another disastrous loan spell at Reading in the Championship last season, where Oxford managed just 201 minutes of action in six months.
The Sun reports they were told by a confidant of Oxford: “Reece hoped the move to Germany would work out better than it has, but it’s time to come back.
“Monchengladbach play a certain way and had a system in place before they signed Reece, and for some reason he has not fitted into what they are doing.
“If he’s not going to feature after they were hammered 6-1, then when will he?”
Oxford burst on to the scene at the start of the 2015/16 season when he lined up for the Hammers in their 2-0 win at Arsenal on the opening day of the Slaven Bilic era at West Ham but the past 18 months have seen his chances limited and also, his stock tumble despite signing a long-term deal in east London when he turned 18.