Software reuse is the process of implementing or updating software systems using existing software components. A good software reuse process facilitates the increase of productivity, quality and reliability. It decreases the cost and implementation time as compared to develop new system. Despite its many benefits we cannot achieve its full benefits. The reason behind this is that software reuse is often done in an informal and haphazard way. If done systematically, then we can achieve its full benefits. This research proposes a method through which we will classify the reusable components in proper way to get the full benefits of reusability. We classify the reusable components according to their clusters. Clusters are made on the basis of parameters provided with components. We develop an algorithm for assigning clusters to the reusable components.