Vodafone Warriors chief executive officer Mick Watson said on Tuesday the 26-year old Morgan goes with the club's blessing and support.
"With 125 first grade games under his belt, Justin is armed with enormous experience to take to Europe," said Watson.
"Justin's appointment as player-coach at Toulouse is Stage 1 in his transition as moving from player to coach.
"We hope Justin does well in France and in the future there could be opportunities for him within the coaching structure of the Warriors."
Morgan revealed on Tuesday his ultimate coaching goal is to be a first-grade coach but at this stage of his career he still has a desire to play.
"I have given myself a safety net by taking a player-coach role," explained Morgan.
"I am not ready to hang up my boots yet but by taking the opportunity at Toulouse I get to find out if I am equipped to take on a full-time coaching career.
"At the same time, having the chance to live in Europe is exciting for me and my family."
Head coach Daniel Anderson said Justin Morgan is giving great service to the Warriors and is a good role model at the club.
"Justin is showing the younger players what is required to play 100-plus games in the NRL," said Anderson.