"Dan is having discussions with Reid's agent," said Hodgson. "Steven has done a very good job in the time I've been here so I don't think his current injury will affect him.
"It will be more a question of us being convinced he's a man that will still help us next year and he being convinced that he wants to be here and help us out.
"Dan will talk him through that one and, if he wants to stay, it won't be a difficult decision to keep him if they can reach an agreement."
Reid's current deal with the Baggies expires at the end of the season.