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After struggling for first-team opportunities in his first season in England, the 19-year-old has excelled under Steve Clarke - notching 10 goals in just 11 starts in the Premier League.
"Rom [Lukaku] has been amazing," Reid told reporters. "A lot better than I thought he would be.
"Chelsea decided to loan him out and decided not to recall him last month which we're happy about. Hopefully next season there will be a scenario where we can keep him for another year."
Lukaku is set to return to Stamford Bridge at the end of the season, but Reid is hopeful the presence of Fernando Torres and January addition Demba Ba will allow the Belgian to extend his stay with the Baggies.
"Maybe it wouldn't be a bad thing for them for Rom to get more games under his belt and, if so, hopefully he could do that with us.” Reid continued.
"We saw just how good he can be against Liverpool. Rom tore them apart when the game became more open just like he did against them at our place.”