Morgan going home to impress Gatland
Morgan, 23, has played his domestic rugby in England's second tier with Bristol for the last two years after leaving Pro12 side Ospreys.
He has been capped five times for his country and made two appearances at the World Cup, including starting at fullback against Fiji, but Morgan has decided the time is right to return home.
"I'm desperate to represent my country and leaving Bristol is the best opportunity for me to achieve this goal," said Morgan, whose new club is yet to be confirmed.
"My time at the club has been fantastic and I have a great relationship with my teammates and the supporters."
Morgan has been a hit at Bristol – he scored six tries last season as the West Country side narrowly missed on promotion to the Premiership – and director of rugby Andy Robinson holds no grudges against his departing star.
"We can't fault a young man in wanting to play international rugby," said Robinson.
"Matthew has lit up Ashton Gate with his performances. He's grown into a confident player who has had the opportunity to represent his country at a World Cup.
"We back Matthew in his decision and he will leave with our best wishes at the end of the campaign. Until then, he knows he has a job to do and will be focused on signing off in the best possible way."
