Several officials close to President-elect Barack Obama's transition tell CNN that Defense Secretary Robert Gates is expected to stay on the job for at least the first year of the new administration.
One source called it "all but a done deal" that the announcement could come as early as next week.
"It's now pointing in that direction," one of the sources close to the transition said of Gates being part of Obama's national security team, which may include Sen. Hillary Clinton as secretary of state.
"It's likely to happen," a second source close to the transition said of Gates staying on.
This source noted that Gates could stay for longer than a year if he and Obama end up working well together.
Sources close to the transition have said Obama is interested in some continuity at the Pentagon because he is entering office while dealing with two wars in Iraq and Afghanistan as well as the international financial crisis.