"Reflecting on Ricky and Michael Hussey's retirements, to see Glenn McGrath ... it's a build-up of a lot of things to be honest.
"But it's unlike me and hopefully you never get to see that again.''
He said the award meant as much as his first, but at the start of a year which includes a Test tour of India and two Ashes series, team success would mean much more.
"When I first came into the Australian team, I was part of such a very special team and we had so many great players and we were the No.1 Test and one-day team in the world for a long period,'' Clarke said.
"Those memories stick fondly in the front of my mind and I want this current Australian team to have that same feeling and be able to walk out onto the field and know what it's like to be the best.''
Clarke also comfortably won the Test cricketer of the year award for the second straight time, after scoring 1080 runs at 77.14 in the nine Tests covered by the voting period, with Hussey also runner-up in that format.
Victorian paceman Clint McKay was named Australia's one-day cricketer of the year, while Watson won the Twenty20 award.
Recalled international top-order batsman Phil Hughes, who moved from NSW to South Australia in the off-season, was named the domestic player of the year.
Queensland and Brisbane Heat 23-year-old batsman Joe Burns was convincingly voted the Bradman young cricketer of the year.
Another 23-year-old batter, Jess Cameron, won the Belinda Clark Award, as the nation's top women's cricketer.
McGrath and Charlie Turner, who took 101 wickets in 17 Tests between 1887 and 1895, were both inducted into the Hall of Fame.
- AAP