With the Swedish defender out of contract at the end of the season, the Scottish coach says talks are ongoing, and hopes a solution can be reached to keep him at the club
Olsson's current deal expires next summer, and his club are keen to tie him to a new deal after the decision to not cash in on him during the last transfer window.
"The club are still talking to Jonas," Clarke told Sky Sports. "The chairman [Jeremy Pearce] and Dan Ashworth [sporting and technical director] are in negotiations."
With almost 150 Baggies appearances to his name since signing for the club in 2008, Olsson has formed a decent partnership with Gareth McAuley in the early stage of the campaign, and Clarke is hoping the defensive duo can remain intact.
"Jonas respects the fact we are keeping him for the last year of his contract, and we respect the fact he's in the last year of his contract.
"If we can find a solution, that's what we'll do, and that's what we're working to do."
If club and player can reach an agreement, it'll be a second positive contract negotiation for the club in as many weeks, following the news that James Morrison has signed an extension at The Hawthorns.