Lugano is in advanced talks with the Baggies.
"It's only healthy for us," he told the Birmingham Mail. "The new arrival coming in helps bring more competition in the squad and we're going to need it because it's a long hard season.
"The players who have been talked about are good for West Brom.
"It shows how far we have moved forward.
"Hopefully the chairman and the gaffer can work together and bring in the players that hopefully will make the team better as a squad,
"The gaffer wants competition for places."