Steele is due back at The Hawthorns after talks about extending his loan at Barnsley to cover FA Cup semi-final against Cardiff next month broke down.
Barnsley boss Simon Davey has admitted he is searching for alternative signings, meaning Steele faces being frozen out of the semi-finals despite having links to two of the clubs taking part.
"Luke will be back here training with us as far as we are aware," the West Brom manager Tony Mowbray told the Express and Star. "It is a sad state of affairs but I like Simon Davey so I am not going to get into a war of words with him. It is unfortunate for Luke but there you go."
Steele played a major part in helping Barnsley reach the last four with a string of impressive performances during his month on loan. He starred in the fifth round win over Liverpool at Anfield and kept a clean sheet as Barnsley knocked out holders Chelsea at Oakwell in the sixth round.