The CBS-owned station also said an indictment of Blagojevich, the first Democrat elected to Illinois' governorship in 30 years, was "not imminent."

Neither the FBI, U.S. Attorney Patrick Fitzgerald nor Blagojevich's office had any immediate comment on the report.

Fitzgerald's office said June 30, 2006, it was looking into "very serious allegations of endemic hiring fraud" in the Blagojevich administration.

Prosecutors also mentioned Blagojevich in an indictment as the intended beneficiary of at least one extortion attempt by Blagojevich fundraiser and businessmen Antoin "Tony" Rezko.

Rezko was convicted June 4 on 16 of the 24 counts against him. He awaits sentencing in October on mail and wire fraud, aiding and abetting bribery and money laundering convictions. He still faces two more trials.

The Chicago Sun-Times has reported Rezko could cut his prison time significantly by cooperating in investigations of other public figures, including Blagojevich.

Rezko lawyer Joseph Duffy called the idea of his client's involvement in other prosecutions "bogus."