But any deal will be subject to Gera proving his fitness after undergoing surgery on an ankle problem.
Gera spent four seasons at the Hawthorns before moving to Fulham in the summer of 2008.
Spot on: Gera is hoping to seal a deal to return to The Hawthorns
He is a free agent after his contract at Craven Cottage expired last month.
Albion said in a statement: 'In light of recent media speculation, Albion can confirm they are in discussions with former player Zoltan Gera and his advisors about a return to The Hawthorns.
'The Hungarian star decided to seek a new challenge after his Fulham contract expired on June 30 and he is now a free agent.
'The Baggies have opened contract talks with Gera, who became a firm fans' favourite during his previous four-year spell at the club between 2004 and 2008.
Magic moment: Gera celebrates his goal against Juventus
'The 32-year-old has undergone a Hawthorns medical, which revealed he was carrying an ankle injury from last season.
'Gera underwent surgery to rectify the problem yesterday and Albion have agreed to oversee his rehabilitation.
'If, as expected, he makes a full recovery - to the satisfaction of the club's medical staff - and agrees personal terms, he will rejoin Albion.
'Gera is not eligible for the first three games of the 2011-12 season after he was sent off in his final match for Fulham.'
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