With the first-choice position held solidly by Emiliano Martinez, the shot-stopper has not featured highly for the Villans recently.
His problem was compounded by the fact that the Villans signed Robin Olsen on loan this month, further providing him with competition.
The Lions are willing to let him move out on loan and Luton are interested in taking him in for the rest of the season.
As it stands, the goalkeeper is very close to a move to the Hatters on loan and will spend the rest of the season with them.
The Hatters are currently tenth in the Championship table, six points behind Middlesbrough who occupy the last playoff place, and want to enrich their goalkeeping options.
Steer has a lot of experience in the second tier, having helped achieve promotion for the Villans in the 2018/19 season.
The shot-stopper has a paltry three appearances for the Lions this season but he will be hoping for regular game-time with the Hatters.
