Reid, who has been with the Baggies since 2010, admitted he would consider dropping down to the Championship should a deal not be agreed.
Speaking to Talksport, he said: "If it gets to that situation and you find yourself out of contract then you need to start cracking on with other options and see what else is out there.
"There’s been a couple of enquiries. I’ve spoken to a couple of managers already in the Championship. We will see over the next couple of weeks.
"It’s going to be quite a big decision so it is one I want to think long and hard about."
In recent seasons, Reid's first-team action has been restricted following a string of injuries, but he is still keen to remain in the top flight.
"Hopefully, something still could be done [at West Brom]. You want to play in the Premier League as long as you can," he added.
"You see the Special One coming back yesterday and you want to be part of the Premier League. But if it means dropping down to the Championship, I have not got a problem with that.”