
On 12 September 2008 Clarke handed in his resignation to Chelsea, hoping to move to West Ham to be assistant to former Chelsea teammate Gianfranco Zola. Chelsea initially rejected his resignation, demanding compensation worth two years of Clarke's salary. After a deal was agreed between the clubs, Clarke became West Ham's first-team coach on 15 September.
West Ham finished ninth in the Premier League in the 2008–09 season, earning Clarke and Zola extended contracts that made Clarke the highest paid assistant manager in the league.The club struggled during the next season, however, narrowly avoiding relegation.In June 2010, not long after the dismissal of Zola as manager, Clarke left the club by mutual consent.
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