Obama also scheduled a meeting in Chicago on Monday with Republican Sen. John McCain, their first face-to-face talks since Obama defeated him in the presidential election on November 4.

Obama spokeswoman Stephanie Cutter said Obama and McCain would discuss ways to bring about a "more effective and efficient federal government." McCain had campaigned on reforming government by cutting out programs and reducing spending.

Would Clinton take the job?

Washington was abuzz with the news that Clinton might be on Obama's short list and be a member of a "team of rivals" in much the same way Abraham Lincoln consolidated power by bringing his opponents into his Cabinet.

Many experts thought she would be a strong choice for secretary of state -- she would be the third woman to hold the job after Madeleine Albright and Condoleezza Rice.

"You need someone who can be taken seriously internationally, who has that kind of experience and policy ability, but also has the gravitas to make people sit down at the table," Democratic strategist Liz Chadderdon said.

But the question was whether she would take the job if offered. An alternative could be to remain in the Senate and use her clout to have a say in Obama's proposals and keep an independent platform for another possible run for president.

There were also questions about how her spotlight-loving husband would be managed if his wife were the top diplomat.

Obama has already turned to many former members of Bill Clinton's administration for help in his transition to power, including his chief of staff, Rahm Emanuel, and co-chairman of his transition team, John Podesta.

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