Obama seen naming national security team

By Jeff Mason and Caren Bohan

CHICAGO (Reuters) - U.S. President-elect Barack Obama will unveil his national security team on Monday with former rival Hillary Clinton picked as secretary of state and Robert Gates staying on as defence secretary.

The pair, who have been at odds with Obama in the past over foreign policy and defence issues, will have the task of implementing Obama's vision for "renewing" America's leadership in world affairs, rebuilding its image abroad, and overseeing two wars in Iraq and Afghanistan.

Monday's announcement has been given added emphasis by last week's rampage in India's financial capital of Mumbai by gunmen who killed nearly 200 people, including at least five U.S. citizens, ratcheting up tensions with nuclear-armed rival Pakistan, which New Delhi said was linked to the attacks.

With polls showing most Americans more concerned about the dire state of the economy than national security, Obama spent much of last week naming leading members of his economic team and presenting himself as a strong chief executive officer.

But the Mumbai attacks were a timely reminder that Obama will not have the luxury of focussing only on fixing the economy as he succeeds outgoing President George W. Bush. His vice president-elect, Joe Biden, warned during the presidential campaign that Obama could be tested by a national security crisis within six months of taking office on January 20.

U.S. authorities warned last week of a possible al Qaeda threat to transit systems in and around New York City, although they added there was no specific information to confirm the plot had developed "beyond aspirational planning."

A Democratic official confirmed Obama had chosen Gates and Clinton, as well as retired Marine Gen. James Jones as national security adviser. They will be named at a Chicago news conference at 3:40 p.m. British time.

Other positions were likely to be announced, possibly including Arizona Gov. Janet Napolitano as head of homeland security, former Justice Department official Eric Holder as attorney general and Susan Rice, an Obama foreign policy adviser, as U.N. ambassador.