Powell, who has been out with a groin injury recently will now be with the Hammers up until December 11th.
West Ham midfielder Adam Nowland will be joining Nottingham Forest later today after agreeing personal terms in a deal in the region of £250,000.
Nowland joins David Connolly and Jobi McAnuff as ex-Don’s who have left West Ham this year.
West Ham have, however, confirmed that Alan Pardew will receive the revenue from Nowland’s sale in order to strengthen the Hammers’ squad.