Barack Obama and Robert Gates are negotiating terms under which the defence secretary would remain as Pentagon chief in the next administration, the Financial Times has learnt.
The president-elect has approached Mr Gates, who has served as defence secretary under George W. Bush since 2006, about accepting the position, which would place a respected Republican in his cabinet. According to a source familiar with the situation, Mr Gates is seriously weighing the option.
The two men are ironing out policy and personnel issues through an intermediary before a final offer is made.