Daniels enjoyed a highly successful loan spell at the Prostar Stadium last term and produced a fine individual display to send the Shrews through to the League Two play-off final at Wembley.
And with only one goalkeeper on their books, Simpson was keen to bring the 21-year-old back to the club.
But with the Baggies still searching for a new manager, the Shrews boss has ruled out any prospect of a return.
"They've had a lot of changes at West Brom over the past month or so and I think it will all depend on the new manager as to whether Luke will be available for loan again," Simpson told Sky Sports.
"That's not really an avenue I'm looking to go down at the moment because there are too many ifs and buts."