McAvennie returned to West Ham United in March 1989 in a £1.25 million deal, making him their record signing. His weekly wages were £2,200, his highest ever weekly wage as a footballer. According to Celtic manager Billy McNeill's autobiography, McAvennie wanted to return to London and his model girlfriend Jenny Blyth. McAvennie claims in his autobiography that Celtic were refusing to pay him a signing-on fee. Just before his return to Boleyn Ground, Celtic had accepted an offer from title chasing Arsenal, whose manager George Graham was looking for a proven goalscorer to partner Alan Smith. However, McAvennie turned down the chance to join Arsenal and accepted John Lyall's offer shortly afterwards. While Arsenal went on to dramatically win the First Division title on the last day of the season, West Ham were relegated to the Second Division and McAvennie failed to score a single goal in the remaining nine games of the season. He has since admitted that his decision to join West Ham and not Arsenal was based on his love of the club and not on the likelihood of footballing success.