I do not know of any options in Word to do this, but I wrote you a simple macro instead, which will link the image you choose from the window that pops up.
' Macro by Fluxenein
Dim strFile As String
With Application.FileDialog(1) ' msoFileDialogOpen
.Filters.Add "Image files", "*.bmp;*.gif;*.jpg;*.png"
If .Show Then
strFile = .SelectedItems(1)
Selection.InlineShapes.AddPicture FileName:=strFile, _
MsgBox "You have not selected a file to link", vbExclamation
Add the macro.You can now assign a button for the macro in the Quick access ribbon so you can click on this instead of the Insert-->Picture then choose from the dropdown and all..
- Click on record macro
2.Give it a name and click button, then ok
3.Word options will popup, now simply add the macro, and it should be a button in quick access.
4.Click on the newly added button and go to view-->Macro-->View Macros and run your macro.
- Choose an image, and the macro will link the image you choose. This is only to set up the button as an alternative to the actual picture insert button. After this, go to view-->Macro-->Stop recording. The button will now work, linking images you choose, saving you time from choosing "link images" in the dropdown in the insert image window.
If you want to Insert and Link, change the "SaveWithDocument:=False" in the macro to "SaveWithDocument:=True". You will have to remove button and edit macro, redo all steps again if so.