Nov. 15 (Bloomberg) -- New York Senator Hillary Clinton appears to be President-elect Barack Obama's leading choice for secretary of state, according to a Democrat familiar with the matter.

Clinton, who lost out to Obama for the Democratic nomination, flew to Chicago on Nov. 13, where the two met. The meeting probably wouldn't have taken place if Obama didn't intend to offer Clinton the position, nor would she have traveled to Chicago if she weren't inclined to accept, this Democrat said.

Obama has surrounded himself with about a half dozen confidantes who are an integral part of the transition decision making and who have refused to discuss internal matters publicly. The group includes Vice President-elect Joe Biden, incoming Chief of Staff Rahm Emanuel, the campaign's chief strategist David Axelrod, and transition leaders John Podesta, Pete Rouse and Valerie Jarrett. Jarrett, 52, was appointed as a senior White House adviser.

Obama, who relinquishes his Senate seat tomorrow, said during his campaign that he would fashion a Cabinet that included Democrats, independents and Republicans. He now appears to be modeling his Cabinet in the style of Abraham Lincoln that became the subject of ``Team of Rivals,'' a book by historian Doris Kearns Goodwin.

Lincoln's Strategy

Lincoln, who spent one term in Congress years before running for president, brought his opponents for the 1860 Republican nomination into his Cabinet as attorney general and secretaries of the Treasury and State.

Obama himself referred to Lincoln's inclusive leadership style at a Boca Raton, Florida, town hall in May. When asked whether Obama would consider Clinton as a vice presidential running mate, Obama replied:

``My goal is to have the best possible government, and that means me winning,'' he said. ``I'm a practical-minded guy. And, you know, one of my heroes is Abraham Lincoln.''

``A while back, there was a wonderful book written by Doris Kearns Goodwin called `Team of Rivals,' in which she talked about how Lincoln basically pulled all the people he'd been running against into his Cabinet,'' Obama continued. ``Because whatever personal feelings there were, the issue was, `How can we get this country through this time of crisis?' I think that has to be the approach one takes to the vice president and the Cabinet.''

Bill Richardson

Another possible candidate for the top diplomatic post is New Mexico Governor Bill Richardson, who also ran for president. The Associated Press, citing a Democratic official, reported last night that Obama was considering him for the job.

Today Obama announced in a statement that Jarrett would serve as assistant to the president for intergovernmental relations and public liaison. Phil Schiliro, a former chief of staff to Representative Henry Waxman, was named as assistant to the president for legislative affairs -- the president's top lobbyist on Capitol Hill. Ron Klain, a former chief of staff for Vice President Al Gore, was named to the same post for Vice President-elect Joe Biden.

Obama repeatedly mentioned Clinton as a possibility during his vice presidential selection process and she was a contender until the last three or four candidates were decided in late July and early August, according to Eric Holder, who headed the search team.

``It was because Barack kept saying, `Well, what about Hillary,''' Holder said in an interview last month.

``He kept her name alive during the process,'' said Holder, who is a contender for attorney general. ``It showed that in spite of everything that had happened in the campaign, he had put all that stuff behind him. He was really thinking about what was going to be best for his administration and for the country.''

To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net

Last Updated: November 15, 2008 09:15 EST