Clarke was taken to Anfield in January 2011 by former Reds boss Kenny Dalglish.
Having forged a reputation as one of the finest coaches in the business during spells at Newcastle, Chelsea and West Ham, the Scot was offered the opportunity to work alongside Dalglish as he attempted to bring the good times back to Merseyside.
Liverpool disappointed, though, in 2011/12, with a Carling Cup success not enough to paper over the Premier League cracks.
Dalglish was relieved of his duties by the Reds board as a result, leaving Clarke facing up to an uncertain future.
Liverpool moved quickly to fill their managerial void with the appointment of Rodgers, and he will be allowed to bring in his own backroom team.
That means Clarke's services are no longer required and he has officially vacated his post.
Rodgers has yet to name a number two but Liverpool and the 39-year-old's former club Swansea have agreed a compensation package which sees three of his trusted staff move to Anfield, including his Liberty Stadium assistant Colin Pascoe.
Performance analyst Chris Davies and head of sports science and medicine Glen Driscoll have also linked up with the Reds.
West Bromwich Albion have moved quickly to sound out Clarke after he left Anfield and sources close to the club believe he could even be appointed by the weekend.
Former Schalke boss Ralf Rangnick had looked set to take charge at the Hawthorns, but he appears to have now dropped out of the running to succeed Hodgson.
Clarke has gained plenty of experience working as number two at Chelsea, West Ham and most recently at Liverpool under Kenny Dalglish.
But the 48 year-old is believed to be keen to step in to a managerial role and Albion fit the bill.
Clarke will have a hard act to follow in Hodgson, who guided West Brom to a top-10 finish in the Barclays Premier League last season.
Source: Sky Sports, Telegraph Sport
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