The Sweden international has struggled to make an impact since his move from Werder Bremen to the Baggies last summer and has started just two league matches.
"It's been a frustrating season for Markus. He's never really been given the chance to show his potential, mainly down to the form of the other players," Clarke said of a man behind Shane Long, Romelu Lukaku and Peter Odemwingie in the pecking order.
"I'm aware Markus is really disappointed, and a little bit down. He comes to speak to me quite often. I respect him for that. He lets me know his frustrations face to face.
"Does he stay beyond this season? That is not a discussion we've had yet. I'm sure between now and next season we have to sit down and discuss things because he is not a young man anymore.
"He is not the type of person who is happy to sit on the bench and just pick up his money. I'm sure it's a conversation we will have.
"We will sit down and decide what is the best thing for Markus and West Brom."