The 19-year-old has scored 12 times this season in the Premier League for Steve Clarke's side, and found the back of the net in his last match against Swansea to take West Brom into seventh place in the table.
Although Lukaku missed a penalty in the same game, he is still the highest scoring teenager in the top five leagues in Europe, and his team-mate believes he should stay in the Midlands.
"Will he benefit from another season at West Brom? Definitely. You think how young he is for such a big unit," Morrison told reporters.
"He is a pleasure to have and I think he will be even better next season.
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|11/2||Romelu Lukaku is 11/2 with BetVictor to open the scoring in Stoke v West Brom
"He's got a lot of hard work to go but I'm sure he is going to be a top player. I'm sure Chelsea are going to develop him."
The Belgian has played 19 times at international level, scoring three on three occasions, and Morrison is aware of his qualities and how important he is to the Baggies' push for Europe.
"Romelu's goals are one of the reasons we are where we are. Hopefully the club can get the deal sorted [for next season]," he added.
"He is big and strong and scores goals and is quick and powerful. He is a handful for anyone."
And the former Middlesbrough man knows that West Brom will need to add to their team if they can qualify for a European place, putting their mid-season slump down to the size of the current squad.
"You saw what we were like in December and January when we couldn't pick a win up," he continued.
"Probably the manager will realise that and hopefully we can get there and build a squad for it."
Lukaku is on a season-long loan from parent club Chelsea, with an extension or permanent move yet to be negotiated.