The Baggies are currently eighth in the division and the former Liverpool and Chelsea coach feels that his side may be asked to pay inflated fees for players in future.
"The club uses the free transfer and loan markets well, but the higher up the league you go, the more difficult it becomes to get players who can improve your squad from that market," The Mirror quotes Clarke as saying.
"Whether that involves spending a little bit more money than we would normally do is a discussion for people in the club. In the Premier League, if you stand still, other teams coming charging past you. It is important we do not stand still and improve and give the players we have got a bit of help for next season.
"That's what we will endeavour to do between now and kickoff next season - we will decide what we need to take us from where we are this year to where we want to be next year."
Clarke is in his first year at The Hawthorns having been assistant manager at Liverpool last season.