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WASHINGTON (AP) -- Democratic officials say that Arizona Gov. Janet Napolitano is a leading contender for the job of secretary of homeland security in President-elect Barack Obama's administration.

These officials caution that no final decision has been made on the job involving the massive department created by the Congress in the wake of the Sept. 11, 2001 terrorist attacks on the United States.

The officials agreed to discuss the situation on grounds of anonymity because of the private nature of the screening process for Obama's Cabinet. Napolitano, who once was Arizona's attorney general, was among the first of the Democratic governors to commit to Obama's presidential bid.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) -- President-elect Barack Obama promised the voters change, but he has started his Cabinet selection process by naming several Washington insiders to top posts.

Obama is enlisting former Senate leader Tom Daschle as his health secretary. Hillary Rodham Clinton seemed more likely than ever to be his secretary of state. Clinton is deciding whether to take that post as America's top diplomat, her associates said Wednesday.

Obama is ready to announce that his attorney general will be Eric Holder, the Justice Department's No. 2 when Clinton's husband was president. Rahm Emanuel, Obama's chief of staff, is another veteran of the Clinton White House.

A few names that have bubbled up for Cabinet posts don't have strong Clinton connections. Several news organizations reported Thursday that Arizona Gov. Janet Napolitano is Obama's primary choice to be secretary of the Homeland Security Department. The New York Times, citing Democrats with knowledge of the process, said Napolitano was about to be offered the job. The Washington Post and The Politico Web site also reported that she was Obama's choice.

Chicago businesswoman Penny Pritzker, who was national finance chairman for Obama's presidential campaign, is his leading choice for commerce secretary, the Times reported. The newspaper said Pritzker was in the final stages of vetting by Obama's transition team.

Daschle's selection to head the Health and Human Services Department -- confirmed Wednesday but not yet announced -- isn't at the same level of Cabinet prestige as the top spots at the State and Justice departments. But the health post could be more important in an Obama administration than in some others, making Daschle a key player in helping steer the president-elect's promised health care reforms.

Daschle could push Obama for quick action on health care reform next year, if he follows his own advice.

Daschle said efforts during the Clinton administration, led by Hillary Clinton, took too long and went into too much detail, giving every interest group an opportunity to find something they didn't like about the plan.

"The next president should act immediately to capitalize on the goodwill that greets any incoming administration. If that means attaching a health-care plan to the federal budget, so be it," Daschle wrote in a book he released this year, "Critical: What We Can Do About the Health-Care Crisis." ''This issue is too important to be stalled by Senate protocol."

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