White House press secretary Josh Earnest today said that Obama has not made a decision. People with knowledge of his thinking say he does not plan to announce a choice before returning from a trip to Asia next week and will leave it up to the Republican-controlled Senate to vote on the choice in 2015.
The sources who described Obama's plans did so on condition of anonymity without authorisation to speak on the record.
Lynch, 55, would be Obama's second trail-blazing pick for the post after Eric Holder served as the nation's first black attorney general.
Democrats on Capitol Hill have told the White House it would be difficult to win confirmation before they turn over the Senate gavel at the end of the year, especially considering all the other competing priorities they are trying to complete while they are in power.
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Lynch is seen as having little baggage or controversy as Republicans are promising tough scrutiny after years of battles with the long-serving Holder.
The current attorney general is close to Lynch and appointed her as chair of the committee that advises him on policy.
Since Lynch is unfamiliar to many in Congress, senators will have to quickly get up to speed on her record.