The striker, who was on loan from Mansfield this season, apparently returned to his parent club with the intention to leave.
Clare met with Stags manager David Holdsworth and asked to be released so he could join The Tynesiders, a club he has fallen in love with.
Holdsworth may have been reluctant, but decided to let the 31 year old go for free.
Clare quickly signed a contract to Gateshead, believed to be for 1 and a half years, and hopes to continue his form which has already seen him score nine goals.
Gateshead will now look to build on this signing when another former loan star, Jon Shaw and Durham born winger Adam Rundle make their decisions in the next week.