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West Ham had originally planned to allow Spector, 24, to move on during the January window, with Bundesliga side Cologne having shown interest in his services. The USA international is in the final year of his contract.
However, an injury crisis saw Avram Grant utilise the defender in midfield against Manchester United in their Carling Cup quarter-final on Tuesday, and Spector scored twice in a 4-0 win.
Grant is now set to give the player a run in his new position and the chance to show his worth.
Asked if Spector was leaving, a Hammers insider told ESPNsoccernet: "Not now he's not. Maybe he's been in the wrong position all his life at full back."
With West Ham still close to £90 million in debt, the owners are taking a prudent approach to new deals and only rewarding those whose performances warrant extensions.
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