Rangers have confirmed the signing of Dundee United striker Jon Daly.
St Mirren defenders Sean Kelly and Jason Naismith have signed new one-year contracts with the club.
The 21-year-old New Zealand international has agreed personal terms with the Foxes and is poised to complete the move once the January transfer window opens.
Wood, who scored 11 goals in 19 appearances during a loan spell with npower Championship side Millwall, returned to the Hawthorns earlier this week.
Leicester boss Nigel Pearson had played down rumours Wood was on his way to the King Power Stadium immediately after the 0-0 draw at Hull on Boxing Day - the third consecutive match the fifth-placed Foxes had drawn a blank.
"As always I don't join in with the speculation until any business is done," he said.
"If the right players are available and we can do it then yes (we will do business). I'm not going to bring players in for the sake of it.
"If the right players are available and we can do the deals then maybe we'll do them."
Despite only turning 21 at the start of the December, Wood has already had spells with Bristol City, Birmingham, Brighton and Barnsley in the past two years.
He started his career at Waikato FC before joining the Baggies academy in 2008 where he eventually went on to make 27 senior appearances.