New York senator Hillary Clinton has accepted an offer from president-elect Barack Obama to become US secretary of state, the New York Times said today, quoting two Clinton associates.
"She's ready," one of the sources told the newspaper, which said Ms Clinton came to her decision after additional discussions with Mr Obama about the nature of her role as the top US diplomat and his plans for foreign policy.
Potential hurdles related to financial disclosures by Ms Clinton's husband, former President Bill Clinton, have been worked out, said the Obama aide, who asked not to be named.
A spokesman for Ms Clinton said she was still in discussion over whether to accept the post though the talks are "very much on track".
Spokesman Philippe Reines and other Clinton officials flatly denied reports tonight that she had accepted the job offer. But officials in both camps said they have every reason to believe that Mr Obama will announce her as his choice shortly after the Thanksgiving holiday.
An official in the Clinton camp said: "They're just talking about the state of the world and what's next."
Mr Obama is likely to name Federal Reserve governor Timothy Geithner as treasury secretary next week.
An official close to the senator says the New York Federal Reserve president is the leading contender for the job and is likely to be nominated on Monday.
The development comes as Mr Obama prepares for how he will grapple with a collapsing economy. Governor Bill Richardson of New Mexico is under serious consideration to be commerce secretary.
Mr Geithner has played a key role in the government's response to the financial crisis and worked closely with Treasury Secretary Henry Paulson.
Agencies