Steele has now signed a season long loan deal with the Tykes with the move to be made permanent at the end of the season.
He will now get his wish to play at Wembley for the Tykes when they take on Cardiff City in the FA Cup semi-final at the beginning of next month.
"It was resolved after training today and I've signed and everything is sorted out," Steele told Sky Sports News.
"I'm going up there tonight, I'm training tomorrow and looking forward to the game on Saturday against Sheffield United.
"Everybody knows I've not had the best time at West Brom, it has been frustrating for me.
"Barnsley have given me a chance and I hope I've done well enough to keep my place.
"All I want to do is make sure I play in the semi-final and also the league games until the end of the season."