Having impressed on loan last season and earned England recognition, the youngster looks set to be the Blues' number one with to Foster leave for West Bromwich Albion
Butland was an unused member of England's Euro 2012 squad, and his new manager believes the 19-year-old is ready to step up and play a leading role for the Midlands club.
"It's common knowledge there's dialogue between ourselves and West Bromwich Albion and we'll see if we can come to an agreement," Clark told BBC Sport.
"Jack wants to come in and be number one and that's what we see him as.
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"I saw a lot of Jack Butland last season and it wasn't a surprise to see him called up to the England squad."
Negotiations are ongoing for Foster’s move to West Brom, but Clark was keen to emphasise Butland’s potential and his belief that he is ready to become a regular in the club’s first-team.
Clark added: "He's got a huge part to play in the future of this club.
"The club are very lucky to have the standard of keepers that we have on the books.
"Everyone can see that Jack's an international star of the future and it would be nice for him to do that with Birmingham City."
Butland spent last season on loan at Cheltenham Town of League Two, where he kept 11 clean sheets in 24 matches. His form earned him six caps for England Under-21s, and selection for England's Euro 2012 squad after Norwich keeper John Ruddy broke a finger in the build-up to the tournament.