Clarke hangs up gloves
The 30-year-old custodian originally picked up the ligament problem in a league match against Leicester in September 2002 and was forced under the knife in a bid to save his career.
Although he came back for the first four games of this season, he broke down again after the 2-1 home defeat by Sheffield United in August and has not returned since.
Clarke, who joined The Eagles from Bradford for £1.35 million in September 2001, revealed that he had been advised by specialists that he could have undergone further surgery in a bid to prolong his playing days.
However, the ex-Sheffield Wednesday star believes the time is now right to call time on his career.
"I have now retired due to my injury," he declared.
"Two or three surgeons said I could have another operation.
"But that would mean being out for another couple of years, taking me towards the end of my contract. I had to take the decision to call it a day."