Southgate told Boro's website: "He's been down at West Brom for talks, we have agreed a fee and we're waiting to see what he wants to do. It's a decision for him to make.
"As a manager you don't really want to lose any players," says Southgate, "but we have to make decisions which are for the good of everybody. It's a question of whether there is guaranteed first team football for him down there.
"It's up to James what he wants to do."