We present a single-crystal neutron diffraction study of the magnetic short-range correlations in Tb₅Ge₄ which orders antiferromagnetically below the Neel temperature T_N≈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 Tb₅Ge₄ is described to consist of strongly coupled ferromagnetic block layers in the ac plane that stack along the b axis with weak antiferromagnetic interlayer 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 Gd₅Ge₄.