The new three-and-a-half-year deal will keep Clark at Aston Villa until the summer of 2014.
Clark said: “I’m delighted to sign a new deal and commit my future to the club.
“I feel I’m at a football club that is progressing and provides an environment in which the young players coming through all want to excel.
“The likes of Marc Albrighton, Barry Bannan, Nathan Delfouneso, Eric Lichaj and myself have all come through together and this underlines the quality of the youth structure at the club.
“It’s a great feeling for me to be signing a new deal because it’s what I’ve worked for since I first came here – to be a part of the team and to contribute what I can to a great football club.”
Clark added: “I know that the gaffer (Gerard Houllier) wants to see me continuing to improve and I’m looking forward to working hard over the next few years.
“I feel at home at the club and it would be fantastic to be a part of the success which all the lads here are striving for.”