Babel has been a revelation for the Cottagers since signing a short-term deal to the end of this campaign in January.
The Dutchman had hoped to keep the club up, but Fulham were relegated with five games to go which has led to him to look around.
Clark, who helped the Cottagers to promotion in 2001, has been impressed by Babel's spell, with the former Liverpool forward scoring five times in 14 Premier League appearances. Indeed, Clark believes Babel's impact has reminded Premier League managers up and down the country of his abilities.
The Geordie wrote in his column for Tribalfootball.com: "Ryan Babel has come in and made a positive impact for Fulham, despite their misfortune. He's been part of the team that has picked up points recently in some impressive wins.
"We all know his ability and I think his returned to English football has reminded everyone of that."
Babel, who cut short his deal at Besiktas to join Fulham, is reportedly in talks with fellow Turkish giants Galatasaray. The 32 year-old still has a house in Istanbul.
But Clark, who played 149 games for the Whites, can see Babel staying in England after his super form for Fulham over recent months.
Clark also wrote, "I would imagine there would be one or two clubs having a look to keep him in the Premier League because in a short space of time, when he's had a run of games and developed a rhythm, he's certainly looked a strong acquisition for Fulham.
"I think they might want to keep him but it'd be difficult while they are competing in the Championship."