The Baggies had been touted as contenders for a top-five finish during the early stages of the Barclays Premier League season thanks to an excellent run of form under new manager Steve Clarke.
They were fourth in the table at the end of November, but a five-match winless run over the new year means Clarke's men currently sit ninth in the table.
Some Albion fans have been disgruntled over the team's performances of late, but Villas-Boas, who used to work with the Scot at Chelsea, believes the 49-year-old deserves credit for the work he is doing at The Hawthorns.
"In my opinion they are having an extremely good season," the Portuguese said ahead of his team's visit to The Hawthorns. "Whatever happens on Sunday, they won't lose their ninth position in the league and they can go higher.
"Because they were so high in the early stages people now look at it as something negative - the fact that they have dropped down - which is extremely unfair in my opinion.
"Steve is doing a fantastic job. They have good conditions to work.
"Hopefully this work can be recognised and not be seen by recent results."
Many had doubted whether Clarke had enough nous to make it as a manager after he spent the majority of his career as a number two.
The Scot has been relatively successful so far, though, bringing an attractive style of football to The Hawthorns while also getting the best out of players like Romelu Lukaku, who struggled under Villas-Boas' stewardship at Chelsea.
Having been alongside Clarke at Stamford Bridge for three years as part of Jose Mourinho's backroom staff, Villas-Boas is glad to see his former colleague doing well.
"He is an excellent person," Villas-Boas said. "I have nothing bad to say about Steve.
"It is fantastic to see him doing well. It has been a great learning experience and a great opportunity at West Brom.
"We had a excellent relationship. I am not sure what captivates Steve is the same as captivates me."
Clarke has faced the toughest test of his management career this week thanks to the bizarre actions of Peter Odemwingie on transfer deadline day.
Without West Brom's permission, the Nigeria striker drove to Loftus Road on Thursday evening hoping to force through a move to QPR, who had a bid rejected for the player earlier that day.
Odemwingie will sit out Sunday's game while the club consider what punishment to hand down to the 31-year-old.
Villas-Boas found the whole situation baffling.
"It's a very difficult situation, very strange," the Spurs boss said, laughing.
"It's really surprising for a player to make a trip over to another stadium and no-one is expecting him.
"We could say something got lost in translation. It's incredible."
Villas-Boas had a rather less eventful deadline day. The Portuguese sanctioned the departure of a number of squad players, mostly on temporary deals.
Chairman Daniel Levy failed with a last-ditch bid to sign primary target Leandro Damiao from Internacional, leaving Villas-Boas with just two recognised strikers in Jermain Defoe and Emmanuel Adebayor for the rest of the campaign.
With Adebayor currently away on Togo duty at the African Nations Cup, the Portuguese is short of options up front.
Although Lewis Holtby impressed when he came off the bench to make his debut against Norwich in midweek, Villas-Boas looks set to keep the German on the bench tomorrow, with Clint Dempsey likely to partner Defoe up front.
"It's too early (for him to start)," the 35-year-old said. "He's just got here, he's not had a lot of time to settle in, plus he's settling his personal life as well.
"He's one of the possibilities, but lots of players are doing well for the team so it's difficult to get into the team."
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