The 34-year-old defender's current terms at The Hawthorns are due to expire in summer 2015.
Despite a lack of first-team action for McAuley this season, Irvine is hoping that the veteran pens an extension with the Baggies.
"I wouldn't want to lose Gareth. I know Gareth is desperate to play but his opportunity to play could come at any moment," the Scot is quoted as saying by the Birmingham Mail.
"Gareth is a really good centre-back and if we were to lose him we would have a really big job on our hands trying to find someone as good as him."
McAuley joined West Brom from Ipswich Town in 2011.