The 26-year-old enjoyed a superb campaign for the Rams last season where he was the top scorer in the Championship with 22 goals.
However, Derby are looking to offload him to help ease their financial fair play troubles this summer. Also, they need to sell their prized asset in order to raise funds for new manager Frank Lampard to spend on shaping his squad.
The Baggies are keeping tabs on the Derby striker, who spent the 2013/14 season on loan at The Hawthorns. However, they would only move for him if the club lose Salomon Rondon or Jay Rodriguez.
The Derby Telegraph reported last month that the Whites are keen on signing Vydra. Since then, the Whites have cooled interest in the Czech striker due to his high wage demands and could walk away from talks, according to the Yorkshire Evening Post.