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Former Huddersfield Town boss Corberan was appointed by the Baggies in October 2022, leading them to a ninth-placed finish in his first season and fifth last term, as they lost to Southampton in the play-off semi-finals.
He has guided Albion to seventh place in the Championship table this season, just outside the play-off places on goals scored, despite claiming his playing budget had been reduced by 30%.
Corberan had been linked with the recent managerial vacancy at Premier League side Southampton, but Saints chose Ivan Juric to replace the sacked Russell Martin.
Valencia, Corberan’s hometown club, are four points from safety, sitting second-bottom of La Liga.
In Baraja’s final game as manager, they drew 2-2 with Alaves on Sunday to move off the bottom of the table on goal difference.
They face reigning champions Real Madrid in their next league game on 3 January.
