That is according to Sky Sports reporter Kaveh Solehkol, who reckons he could even be offered a new deal.
Sakho, 27, went AWOL after failing to turn up to West Ham training this morning.
The Senegal international apparently had a medical at French side Rennes with personal terms also agreed upon.
But West Ham, who were unaware of a proposed deal with Rennes, pulled the plug on the transfer and requested he return to the London Stadium to hold crunch talks over his future.
Sakho, who was in attendance at Chelmsford racecourse with his representatives, cited personal problems behind wanting a move away from east London.
Diafra Sakho will be staying at West Ham after positive talks
But despite all this deadline day drama, Solehkol has confirmed he is staying at West Ham as the club have reached a solution over his issues.
On Twitter, Solehkol said: “Diafra Sakho staying at West Ham after talks. May be offered new deal.
“Club understand his personal problems. He's proud to play for WHUFC”.
He also revealed that Sakho won £550 at Chelmsford races after putting on a £100 bet on his agent’s horse Siege of Boston.
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Kaveh Solhekol's tweet on Diafra Sakho staying at West Ham
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Kaveh Solhekol's tweet on Diafra Sakho's winnings at Chelmsford races
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Diafra Sakho will be staying at West Ham after positive talks with the club
Solehkol added: “West Ham forward Diafra Sakho landed a touch during visit to Chelmsford races today.
“Put £100 on agent's horse Siege of Boston and won £550.”
Sakho has fallen down the pecking order at West Ham following the arrival of Javier Hernandez.
The Mexico international arrived from Bayer Leverkusen £14million earlier this summer.
