The 19-year-old Birmingham City star impressed the Baggies boss after he starred in the 1-0 defeat to Aston Villa during the Capital One Cup last week.
He also sent scouts to monitor the winger during an English Championship game against Rotherham at the weekend.
A host of other Premier League clubs are set to join the race for his services given that his release-clause it set to be lowered significantly at the end of the current campaign unless he manages to sign a new deal.
Apart from the Gunners, Leicester City and Liverpool were also in talks over a move for the player during the summer and is likely to reignite interest when the upcoming window reopens.
He featured 43 times in all competitions for his side last term, scoring a total of six goals while providing another two assists.