Ferguson had been set to join the Premier League side in January after the two clubs agreed an £11million fee with a further £1 million in add-ons.
But the move collapsed at the last minute when Palace picked up a problem with the defender’s knee during his medical.
Ferguson has since undergone surgery.
And with football currently suspended due to the coronavirus pandemic – he is now working at home on a programme Albion have created for him to ensure he returns to full fitness.
Nevertheless, the defender is highly unlikely to play for the club again. After the move to Palace broke down, his agent told the Baggies hierarchy his client still wants to leave the club.
It was also revealed the 19-year-old turned down the chance to rejoin Albion on loan if the move had gone through.
Ferguson is out of contract in the summer and appears destined to continue his career elsewhere.
A host of clubs are interested in signing the versatile defender at home and abroad.
But the Express & Star understands Palace are confident they will sign him – with Ferguson and his family believed to be keen on a move to London.
That is good news for the Baggies, who will receive compensation for the player they have developed since he was eight. Having agreed an £11million fee in the past, Albion will expect a tribunal to rule they should be compensated a similar amount.
However, if Ferguson was to move abroad – the Baggies would receive less than £300,000 under FIFA’s compensation rules for players who move overseas.
Meanwhile, former Swansea defender Martin Olsson has claimed he was close to joining Albion in January.
The Sweden international spent two weeks on trial with the Baggies – who ended up signing Lee Peltier to bolster their defence.
“The apartment was ready, everything was ready, but there was a bit of a mess there with some player,” Olsson said.
“It was very close. Only the signature was missing.”