Clarke took over as head coach at West Brom in June 2012 and his current contract is set to expire at the end of the season.
West Brom Sporting & 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.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.