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Kerry was Obama's favorite for the job as secretary of state in 2008 before the president selected Hillary Clinton, his rival in the contest for the Democratic presidential nominee.
The nomination of Kerry in Obama's second term has been widely expected since Susan Rice, the American ambassador to the United Nations and Obama's top choice for secretary of state, withdrew last week over controversy about the Sept. 11 attack on the U.S. consulate in Benghazi, Libya, in which four Americans were killed including Ambassador Christopher Stevens.
Some Republican senators have vowed to block Rice's nomination over her initial description of the attack as one arising from a spontaneous protest over an American-made film that denigrated the Prophet Mohammed rather than a terrorist attack acknowledged later by the administration, accusing her of trying to mislead weeks before the presidential election.
As the current chairman of the Senate Foreign Relations Committee, Kerry's nomination is expected to get a swift confirmation in the Senate as some Republican and Democratic senators have voiced backing for their veteran peer.
But like Clinton, Kerry is not part of Obama's inner circle, a fact that casts doubt about his ability to wield influence over foreign policy making in the administration.
Kerry insiders were quoted as saying in press reports that as top American diplomat, Kerry would like to play a big role in shaping policies for the Middle East and promoting peace between the Israelis and the Palestinians.
He will head a department beset by limited funds and rising security costs overseas, and the agency pledged on Thursday to boost security at diplomatic posts in dangerous areas following the Benghazi attack.
Clinton, who the department said is recovering from a concussion and working at home this week, did not appear for Kerry 's nomination.
"Hillary wanted very much to be here today, but she continues to recuperate," Obama said. "I had a chance to talk to her earlier today, and she is in good spirits and could not be more excited about the announcement that I'm making."