That option will allow Clarke to try and retain a place at Essendon for next year, with the potential of being recruited via next year's Pre-Season Supplemental Selection Period.
Clarke has played 24 games in the red sash, first joining the club via the 2016 National Draft and making his AFL debut in 2018.
The Eastern Ranges product made just the four appearances this season, playing in Essendon's final four home and away games.
“Dylan has constantly displayed dedication and a team-first approach throughout his time with the club,” Bombers football boss Josh Mahoney said on the decision.
“While we have made the decision to delist him, we will give him the opportunity to keep training with the playing group with the option to be taken as a pre-season supplemental selection period (SSP) signing.”