After Watson and three of his colleagues -- pacemen James Pattinson and Mitchell Johnson, and batsman Usman Khawaja -- were axed from the team for the third Test because of their failure to complete a task set by the coach Mickey Arthur, the allrounder returned to Sydney.
His return coincided with his wife expecting their first child. Before leaving India, Watson had said he would weigh up his options and take a call on his Test cricket future.
"I think Watto has made it clear to everybody that that's something he's thinking about while he's home.
"From my point of view he's vice-captain of this team and he's a big part of this team, there's no doubt about that. From the conversation Watto and I have had, 100 per cent he has gone home for the birth of his first child, which is very exciting for him. I know he's really excited about that," said Clarke.
The situation got more complicated yesterday with Cricket Australia general manager of team performance, Pat Howard, saying that Watson was a team player "sometimes" and alluded to issues between Watson and Clarke.
However, Clarke today refused to get involved in the debate, saying he was sure Watson and Howard must be communicating with each other back home.