They will assume his salary of £120,000 in its entirety, as well as pay a fee of around £2 million for the temporary arrangement with a medical expected to happen late Monday afternoon.
That didn’t materialise, which encouraged Newcastle to enter negotiations for the 28-year-old, who has started just five games in the campaign.
Rafael Benitez was waiting on the forward to travel to Tyneside on Monday afternoon, but with West Brom entering the fray and offering Birmingham-born Sturridge the opportunity to return to the West Midlands, that plan was torpedoed.
The Baggies are currently looking the most likely to finalise his signing on a temporary basis before Wednesday’s transfer deadline.
Sturridge last featured for Liverpool in the 7-0 Champions League hammering of Spartak Moscow on December 6, despite being fit and available for their last three fixtures after overcoming a muscle issue and illness. He has scored three goals and added three assists in 14 appearances this season in the Premier League and Champions League.
Odds were slashed on Sturridge joining West Brom on Sunday following a flurry of bets over the weekend.