West Ham manager David Moyes is expected to target players with Premier League experience as he seeks to guide the club away from the relegation zone.
On Tuesday, the Hammers said a dispute with Sporting Lisbon over their pursuit of William Carvalho had been resolved.
But Moyes, who succeeded Slaven Bilic last month, is not thought to want the Portugal midfielder in January.
West Ham have spent only three of the past 25 seasons outside the top flight but are 19th in the table on 10 points.
Moyes, who has been assured he has money to spend during next month’s transfer window, has overseen three defeats and a draw in his four games in charge.
While another move for Carvalho is not being ruled out, it is understood Moyes feels knowledge of English football is key if signings are to have an immediate impact.
Sporting said they were going to report the Hammers to Fifa for an illegal pursuit of the 25-year-old midfielder in the summer.
READ: Tolisso scores twice as Bayern Munich beat PSG 3-1
The Portuguese club also made personal comments about West Ham owners David Sullivan and David Gold.
“Friendly relations between the clubs will resume,” said a Hammers statement.
In September, West Ham said they made a bid for Carvalho and released emails that they claimed showed their official approach.
But Sporting’s communications director Nuno Saraiva questioned the validity of the leaked emails, which apparently showed a 25m euros (£22.8m) offer, as well suggestions Sullivan was called a “liar” and a “parasite” in a Facebook post.
West Ham refuted the claims, called them “attention seeking”, and considered legal action.
However, on Tuesday the Premier League club said: “West Ham and Sporting acknowledge that a breakdown in communication based in contacts between representatives from both clubs in respect of a possible transfer of William Carvalho was the cause of a misunderstanding.
“The clubs have had positive communications and the matter is now resolved.
“There will be no barriers to both clubs negotiating or working together in the future.”
