[I have no idea how reliable Times UK political gossip about the US is, but...]
http://www.timesonline.co.uk/tol/news/world/us_and_americas/us_elections/article3466823.ece
From The Sunday Times
March 2, 2008
Barnstorming Obama plans to pick Republicans for cabinet
Sarah Baxter
As he jets across two key states whipping up the support that could
finish off Hillary Clinton this week, the Democratic frontrunner is
already mapping out a government of all the talents. Our writer joins
him aboard Obama One
AS Barack Obama enters the final stages of the fight for the
Democratic presidential nomination, he is preparing to detach the
core voters of John McCain, the likely Republican nominee, with the
same ruthless determination with which he has peeled off Hillary
Clinton's supporters.
The scene is set for a tussle between the two candidates for the
support of some of the sharpest and most independent minds in
politics. Obama is hoping to appoint cross-party figures to his
cabinet such as Chuck Hagel, the Republican senator for Nebraska and
an opponent of the Iraq war, and Richard Lugar, leader of the
Republicans on the Senate foreign relations committee.
Senior advisers confirmed that Hagel, a highly decorated Vietnam war
veteran and one of McCain's closest friends in the Senate, was
considered an ideal candidate for defence secretary. Some regard the
outspoken Republican as a possible vice-presidential nominee
although that might be regarded as a "stretch".
Asked about his choice of cabinet last week, Obama told The Sunday
Times: "Chuck Hagel is a great friend of mine and I respect him very
much," although he was wary of appearing as though he was already
choosing the White House curtains. But after winning 11 primary
contests in a row after Super Tuesday, he is ready to elbow Clinton
off the stage.