The vice president-elect and Obama spoke at the National Governors Association meeting to discuss a federal-state partnership to help turn around the economy. Palin attended the conference as governor of Alaska, The Hill reported.

Palin was the first governor Obama greeted as he entered the room. The two shook hands, but their exchange wasn't overheard, the Washington publication said.

Biden noted the economic crisis doesn't recognize political parties.

"We're all together," Biden said. "We're all dealing with a common problem."

Obama did not mention Palin by name in his remarks. However, he told Republican governors in attendance he was offering them "the same hand of friendship and cooperation that I offer our Democratic governors."

While the election saw vigorous campaigning, "with the end of that season comes the time to govern together," Obama said, "and that time is now."