Clarke has only seven months remaining on his current contract after replacing Roy Hodgson at the Hawthorns on a two-year deal in June 2012.
The former Chelsea, West Ham and Liverpool assistant has enjoyed success in his first permanent managerial role, guiding the Baggies to eighth last season with a club-record 48 points in the Premier League.
There had been suggestions that West Brom risked losing Clarke as they were yet to hold discussions, but the club have moved to allay those fears.
Sporting and technical director Richard Garlick said: "Steve's contract situation was discussed at last month's board meeting.
"We decided that we would open talks with Steve in the new year which, historically, we feel is the appropriate time to address such matters.
"We have got an extremely busy period ahead, with important games coming thick and fast.
"Once the Christmas period is out of the way, we plan to sit down with Steve and discuss his future.
"Steve is aware of our plans and has told us he is comfortable with the situation."
And Clarke echoed those sentiments at his Friday press conference before Monday's Midlands derby clash with Aston Villa.
He said: "It's not a big issue for me because, before we get there (to the talks), there is a lot of football to be played, a lot of games still to go.
"We have a big game on Monday night against our local rivals, which we're looking forward to. The contract situation for me will take care of itself.
"We have a number of games over December and January. It's a busy, busy time and, when we get time, myself and the club will sit down and discuss the way forward."