Iroegbunam shone for the Baggies under-18s last season but the Express & Star understands he has turned down a new deal with the club in favour of a move to Villa.
In better news for Albion, though, England under-21 goalkeeper Josh Griffiths has agreed a new contract with the club.
Fellow youngsters Caleb Taylor, Ethan Ingram, Jamie Andrews, Zac Ashworth, Mo Faal, Tom Fellows, Aurio Teixeira and Jovan Malcolm have also agreed new terms.
It is understood Ingram and Malcolm both received significant offers from elsewhere but turned them down to stay with Albion.
Speaking at his first press conference as Baggies boss on Monday, head coach Valerien Ismael said he is determined to give the club’s academy stars opportunities in the first team.
But he also knows he needs to make additions with the Frenchman giving the club the green light to pursue a move for Chalobah.
The 22-year-old has previously impressed in the Championship during loan stints with Huddersfield and Ipswich.
He spent last season on loan in France with FC Lorient.
A former England under-21 international, Chalobah has three years left on his deal at Chelsea.
But it’s understood boss Thomas Tuchel has made him available for transfer.
It is not known if the London side are demanding a fee for the 22-year-old.
Meanwhile, academy manager Richard Stevens said he is delighted to see so many of Albion’s youngsters commit their future to the club – particularly after they reached the semi-finals of the FA Youth Cup last season.
“To tie this group down off the back of a really good FA Youth Cup campaign is a great achievement for this football club,” he said.
“That group went way beyond expectations after getting to the semi-final, and have got everything they deserved from that.
“There’s a lot of promising youngsters with plenty of potential who can play in the Under-23s, go out on loan and hopefully, at some point, threaten the first-team squad in the future.
“So to have these boys commit to us is great news.
“Jovan Malcolm and Ethan Ingram had strong interest from other clubs, but the fact they’ve chosen to stay with us is a great accolade for the club.”