We present a single crystal neutron diffraction study of the magnetic short-range correlations in Tb$_5$Ge$_4$ which orders antiferromagnetically below the Neel temperature $T_N$ $approx$ 92 K. Strong diffuse scattering arising from magnetic short-range correlations was observed in wide temperature ranges both below and above $T_N$. The antiferromagnetic ordering in Tb$_5$Ge$_4$ can be described as strongly coupled ferromagnetic block layers in the $ac$-plane that stack along the b-axis with weak antiferromagnetic inter-layer coupling. Diffuse scattering was observed along both $a^*$ and $b^*$ directions indicating three-dimensional short-range correlations. Moreover, the $q$-dependence of the diffuse scattering is Squared-Lorentzian in form suggesting a strongly clustered magnetic state that may be related to the proposed Griffiths-like phase in Gd$_5$Ge$_4$.
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