The England under-21 international burst onto the scene with goals for the West Brom first-team in the Capital One Cup and against Manchester United at Old Trafford. Chelsea, Everton and Arsenal reportedly sent scouts to watch Berahino at West Brom games this season, with his £850-a-week deal set to expire at the end of the season.
The contract on the table from West Brom is thought to include a bumper pay rise for the 20-year-old to reflect his new status as a first-team player in Steve Clarke's Baggies team.
West Brom staff held a meeting last week to discuss contract extensions and player retention, and followed that up with the offer to Berahino's agent.
Chelsea and Arsenal watched on as Berahino notched four goals in his first three international appearances at under-21 level, with the Blues reportedly willing to offer up to £5m for his services.
With the potential to snap him up on the cheap in January - or even on a free transfer next summer - the likes of Jose Mourinho and Arsene Wenger were believed to be extremely interested.
But the report claims it was always Berahino's intention to stay at The Hawthorns.
He feels it's the best place for first-team football, and with a chance of playing his way into Roy Hodgson's England squad for the World Cup, the 20-year-old frontman wants to maximise his playing chances.
Many young players have moved to Chelsea and Arsenal only to fail to break into the first-team squad - but equally it is an opportunity to play for one of Europe's biggest clubs.