In a tweet after Biden's announcement, Clinton said Vice President "is a good friend and a great man. Today and always, inspired by his optimism and commitment to change the world for the better".
Biden's surprise and sudden announcement paves a much easier way for Clinton to bag the Democratic party's presidential nomination for the 2016 election.
Currently she is leading all national polls.
She is followed by the Vermont Senator Bernie Sanders.
Clinton was the Secretary of State for four years in the first term of the Obama Administration.
Donald Trump, the leading Republican presidential candidate, said Biden made a good decision.
"I think Joe Biden made correct decision for him and his family. Personally, I would rather run against Hillary because her record is so bad," he said in a tweet.
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