The 24-year-old made just two Premier League starts for Manchester City last season, enduring a frustrating maiden campaign, but could be granted an escape route by the Baggies
The Hawthorns outfit have been chasing the 24-year-old throughout the summer transfer window as head coach Clarke looks to bolster his options.
|13/8||West Brom are 13/8 with William Hill to finish in the top 10
"I know there was initial contact between the clubs and I know there has been continued contact between the clubs," the Scot said.
"Beyond that, I don't know if we are close to a deal or if we are far away from a deal. There are still talks ongoing at this moment in time."
Clarke has already wrapped up permanent moves for Diego Lugano and Nicolas Anelka, while Matej Vydra and Goran Popov have come in on loan, though he is keen to add to his squad and improve on last season's eighth-place finish.
"At the moment, if I could get two more in, I'd be happy," he added. "And if I could get three more, then I think we'd be set. I'm staying confident."