Save the Word document with images as a web page.

This setting allows you to save the images in the same directory as the .htm file.

In Word, go to File, select Save As Web Pages.
Go to Tools, select Web Page Options.

In the Web Options window, select Files tab. Uncheck "Organize Supporting Files in a Folder". Click OK.

Click Save button to save the file as .htm file.

You may select "Web Page Filtered" format before clicking the Save button.