That said, there are clear dangers for Obama as well, not least of them any lingering rivalry between the two of them after an often-contentious primary campaign. He would also inevitably be sharing the stage with both Clintons, with all of the attention and baggage that accompany them wherever they go — something that the drama-averse president-elect would no doubt have to resign himself to. And her appointment could undercut his argument that he is bringing true change to Washington.

It is not clear what room Clinton's presence as the nation's top diplomat would leave for Vice President-elect Joseph R. Biden Jr. to be an influential player in his specialty of foreign policy. Moreover, now that Obama's consideration of Clinton has become so public, he faces another danger: the risk of reopening old wounds in the party and among Democratic women in particular if he does not appoint Clinton to a top job.

For Clinton, there are pros and cons to taking the job as well. Senior Senate Democratic officials say it has become increasingly clear to Clinton and her advisers in recent days that there was no quick route to a position of influence in the Senate, potentially increasing her interest in a prominent role in the new Obama administration.

She had approached Senate Majority Leader Harry Reid about becoming chairman of special subcommittee to handle health care issues, but he squelched the idea, according to Senate officials. Aides to Sen. Edward M. Kennedy, D-Mass., made it clear that Kennedy, despite his illness, intended to consider health overhaul before the full committee that he chairs.

Clinton was also discouraged from trying to mount a challenge to any of the junior members of the party's Senate leadership, one official said. In a seniority-driven institution like the Senate, it could take years for Clinton to accumulate real power, despite her status as a national political celebrity and the appeal she demonstrated in the primary season.

One potential downside for Clinton taking a top job in the Cabinet: She would presumably have to disclose much more about Bill Clinton's earnings, especially from foreign sources, and donors to his presidential library than they have been willing to disclose so far.

Appearing in Albany, N.Y., on Friday, Clinton said she would not address reports about whether she would be offered a position in the Obama administration. "I'm not going to speculate or address anything about the president-elect's incoming administration," she said.

Some friends of Clinton's said she would likely be interested in the job if it was offered to her, and others suggested that she was well-qualified.