Clustering algorithms can balance the power consumption of energy constraint wireless sensor networks. This paper proposes a new clustering protocol called Mean Territorial Energy Based Clustering Protocol (MTEP) for randomly deployed wireless sensor networks. In MTEP, cluster heads are selected according to residual energy and location information of a node in current round as well as mean territorial energy and total base station distance of node’s corresponding cluster territory in previous round. Energy consumption in conventional protocols becomes unbalanced because of clusters having different lengths. Proposed MTEP protocol addresses this problem by setting thresholds on cluster length and node to cluster head distance for producing equal length clusters. Simulation results show that MTEP protocol extends network lifetime and stability with reduction in energy dissipation compared to other clustering protocols such as LEACH and REAC.