West Brom have enjoyed an impressive campaign during Clarke's first managerial appointment and the club sit eighth in the Premier League with six games to go.
The Baggies are due to lose on-loan striker Romelu Lukaku and Clarke believes a top-10 finish will boost the club's prospects of signing better players.
"In the Premier League, if you stand still other teams come charging past you," said Clarke. "Whether that means spending more money than normal is a discussion for the club.
"The higher up the league we finish the easier it will be to attract better quality players.
"Next season is always in your thoughts and you're always looking, watching games and players and thinking 'it would be good if we could get him'.
"You are always looking at your team and seeing how and where you can improve it. I spend a lot of time watching over games.
"And we are thinking about next season but we are not going to be distracted by it."