A friend of Clinton's said she was ready to accept an appointment that would make the former Obama rival his point person in tackling an array of international crises and restoring the United States' influence around the world, a frequently stated objective of the incoming administration.

Although the Obama transition team and Clinton's Senate spokesman said nothing had been finalized, her office for the first time confirmed that she was talking to Obama about the job. "We're still in discussions, which are very much on track. Any reports beyond that are premature," said Philippe Reines, Clinton's spokesman and senior adviser.

Also yesterday, senior Democratic officials said that Obama intends to name Timothy Geithner, president of the New York Federal Reserve, as his treasury secretary to confront the nation's economic turmoil. The stock market soared on the news.

Officials also said New Mexico Gov. Bill Richardson had emerged as a likely pick as commerce secretary.

Several sources said that Jones had moved to the top of the list to be Obama's national security adviser and that the sides were in advanced talks. Sources familiar with the discussions said Obama is considering expanding the scope of the job to give the adviser the kind of authority once wielded by powerful figures such as Henry Kissinger.

The Jones appointment would put the former Marine Corps commandant and NATO commander in charge of managing an interagency process that many Democratic foreign-policy experts say has been broken under the Bush administration.

With many Democrats expecting Robert M. Gates to remain as defense secretary, the emerging national security team appears to be centrist in orientation, with deep experience in many of the areas likely to be the focus of Obama's foreign policy, including wars in Iraq and Afghanistan and instability in Pakistan and the Middle East.

Obama plans to announce Geithner's appointment as treasury secretary in Chicago on Monday, barring an unforeseen snag in a background check that is nearly complete, said one of the senior officials, both of whom were familiar with the deliberations.

If nominated and confirmed by the Senate, Geithner, 47, would assume chief responsibility for tackling the economic slowdown and credit crunch. In his current post in New York, he has played a key role in the government's response to the crisis and has worked with Treasury Secretary Henry M. Paulson Jr. and Ben S. Bernanke, chairman of the Federal Reserve.

Lawrence Summers, a former treasury secretary and Harvard University president, was being considered as an economic adviser. Economic posts also seemed likely for Obama's top two economic advisers during his campaign, Austan Goolsbee and Jason Furman.

Obama's choice for attorney general, a critical post as the president-elect rounds out his top cabinet echelon, is Eric Holder, who held the No. 2 slot in the Justice Department in President Bill Clinton's administration.

Obama has also been meeting with possible candidates for other posts, including director of national intelligence. One name that has surfaced is retired Adm. Dennis Blair, a former chief of the U.S. Pacific Command.

Sources also said yesterday that Rep. Raul M. Grijalva (D., Ariz.) had emerged as a leading contender for interior secretary. The son of a migrant worker who grew up in Tucson, Grijalva boasts a strong environmental record.

Obama also is filling out the ranks of White House staff.

He named Patrick Gaspard his political director. Gaspard was Obama's national political director during the general election campaign and has long ties to labor.

Other appointments included Jackie Norris as chief of staff to first lady Michelle Obama; Catherine M. Russell as chief of staff to Vice President-elect Joseph R. Biden Jr.'s wife, Jill; Cynthia Hogan as counsel to the vice president, and Moises V. Vela Jr. as director of administration for the vice president.

Obamas Chose Sidwell Friends School

President-elect Barack Obama and his wife, Michelle, have chosen Sidwell Friends School for their two daughters, opting for a private institution that another White House child, Chelsea Clinton, attended a decade ago.

Malia, 10, and Sasha, 7, "bring with them a number of security and privacy concerns that come with being part of the new first family - and the school they've selected is positioned to appropriately accommodate that," said Katie McCormick Lelyveld, a spokeswoman for Michelle Obama.

Sidwell is a private Quaker school with a campus in northwest Washington for grades 5-12 and another in suburban Bethesda, Md., for kindergarten through fourth grade. Malia is in fifth grade and Sasha is in second grade.

Lelyveld said that while public schools were considered, the Obamas thought that a private school was in the best interest of their children. The girls currently attend

a private school in Chicago.

Tuition at the lower school is $28,442; it is $29,442 at the middle and upper schools.

- Associated Press