According to Sky Sports Transfer Centre, they are both about to sign agreed contracts (for us). This for Morgan would presumably replace the 1 year extension he has recently agreed to.
Excellent, there may be some doubts as to whether these two can hack it in the Premier League, but they've been pretty damn good for us so far, so I'm happy!
I believe it was upto Pearson if he wanted to take up the year extension, and did, thus making it impossible for him to be poached on a free this summer. The extra year should be overwritten by what he will sign, probably a better wage contract too.
The club had a clause in Morgan's contract saying once he had played over 100 games we could activate a clause in his contract that would extend his contract by a year.