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Major points of concern in implementing a wireless sensor network (WSN) are the network lifetime and energy utility within any delay tolerant network. Both these parameters define the success of the sensor network. The higher the expectancy of network Lifetime, the higher is the probability of acceptance of the network. Similarly, better the energy utilization in the network, better are the chances of success and implementation of the sensor network. Clustering is one such scheme adopted in WSN towards harnessing the best of above specified parameters for the network implemented. Most popular clustering techniques are the variants of LEACH protocol that facilitate cluster formation based on the proximity of an individual node to other nodes in the sensor network. These protocols are based on a single hop structure from the selected cluster heads in the network. This paper embarks on a multi-hop clustering algorithm that takes into consideration the spatial correlation between the nodes to form clusters and implements a highly energy efficient routing scheme which selects the multi-hop path in the network in a dynamic fashion.