The former England youth international handed in a request to move on from The Baggies and the club have decided to accept the 23-year-old's wish to leave the Black Country outfit.
West Brom chairman Jeremy Peace stated that despite their willingness to let Chambers move on, they will not let him leave on the cheap.
"James has expressed a wish to leave the club," Peace told the club's official website.
"After discussing the matter with the manager, we have decided to put James on the transfer list.
"We are prepared to receive offers for him before Thursday's transfer deadline.
"James is a young, home-grown player and we will be seeking suitable compensation for the loss of his services."
Meanwhile, Chambers's twin brother Adam has extended his loan with Second Division club Sheffield Wednesday for the rest of the season.
The midfielder joined The Owls for an initial four-week loan last month but the 23-year-old will now remain at Hillsborough until the end of the current campaign.
The Baggies will have the right to recall him should they need his services before the season's end.
