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A defiant Rod Blagojevich, who is accused of trying to sell the seat to the highest bidder, was expected to name former Illinois attorney general Roland Burris, 71, to the seat, the Chicago Tribune reported.
Senate leaders warned they would not seat anyone appointed by Mr Blagojevich after he was arrested December 9 on fraud and bribery charges linked to FBI wiretaps in which he allegedly discussed ways to profit from the appointment.
Mr Blagojevich's lawyer had said the Democratic governor would not try to fill the seat and supported a special election to fill the vacancy.
But a battle was brewing among state lawmakers over the special election, with Republicans accusing Democrats of blocking the necessary legislation out of fear they could lose the seat.
Mr Burris is not thought to be among the six candidates discussed by Mr Blagojevich in the FBI wiretaps and could satisfy Blagojevich's critics.
Mr Burris was the first African-American elected to statewide office in Illinois when he won the office of state comptroller in 1983, an office he held until he was became the second African American in the United States elected to the office of attorney general in 1991.
He also served as vice-chairman of the Democratic National Committee from 1985 to 1989.
A senior attorney at a Wisconsin law firm, Burris has made Ebony magazine's annual list of the 100 most influential African-Americans 16 times.
