West Brom have been looking for a new manager since they sacked Pepe Mel, the day after the end of the season.
A host of names have been linked with the vacancy at The Hawthorns and it is understood Sherwood is in the running to succeed Mel.
Sherwood parted company with Tottenham last month, just five months after he replaced Andre Villas-Boas at White Hart Lane with Mauricio Pochettino taking over at Tottenham.
The 45-year-old is thought to be keen to get back into management as soon as possible and has also been linked with the vacant Southampton job.
However, Sherwood has now emerged as a top candidate to take charge at West Brom with the club hoping to make an appointment before the weekend.