The 32-year-old agreed a one-year extension at the Hawthorns after failing to make enough appearances last term to trigger a 12-month option in his previous contract.
Despite an injury-plagued campaign, the Baggies decided to extend his stay at the club and Clarke believes he can play a big part next term providing he can stay fit.
"I'm delighted Steven has committed himself to the club for another year," the Albion manager told the club's official website.
"He's a good pro, has bags of Premier League experience and is a great character to have both within the squad and around the training ground.
"If he has better luck with injuries, Steven will have a big part to play here in the new season."