"Mr Obama's transition team did not officially comment on the reports, which broke earlier than it wanted. "Obama offered Holder the job and he accepted," Newsweek magazine said on its website, adding that "the announcement is not likely until after Obama announces his choices to lead the Treasury and State departments".
Mr Holder, 57, whose appointment is subject to confirmation by the Senate, was deputy attorney general for four years under former president Bill Clinton and was co-chairman along with Caroline Kennedy of Mr Obama's vice-presidential selection process.
He is respected in Washington by both Republicans and Democrats, although his record is marred by agreeing to pardon the fugitive Marc Rich at the end of the Clinton administration.
At the time Mr Holder said he was "neutral, leaning towards favourable" on the subject. Mr Clinton later cited that as among the factors that persuaded him to issue the pardon.
Mr Holder has publicly apologised for what he said was a snap decision to which he should have paid more attention. Had he taken more time to review the case, he would have advised against a pardon, he said.
Members of Mr Obama's vetting team have asked Senate Republicans in the past week whether they would support Mr Holder at his confirmation hearings and have been assured that, although questions will be asked, the Rich controversy would not derail his appointment.
Mr Holder is the most prominent African American among the appointments made so far by Mr Obama. Born and raised in the Bronx, New York, by immigrants from Barbados, he has spent most of his career in the Justice Department.
Always among the favourites for the post, he has a strong personal rapport with Mr Obama – the two men, both graduates of Columbia University in New York, spoke almost every day during the presidential campaign".
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