In a video announcement on his campaign website, Daley blasted the situation in Springfield, Ill., while borrowing President Obama's administration's message of "We Can't Wait," Politico reported.
In the video, he took state lawmakers to task for dragging their heels on issues such as gay marriage, pension reform and the "scourge" of guns in society.
"The people of Illinois can't wait," Daley said in the video. "This will be a campaign of action and urgency."
If he takes the plunge, Daley would be challenging Gov. Pat Quinn in the Democratic primary in March.
A November Public Policy Polling survey indicated Quinn had an approval rate of 25 percent, making him the least popular governor in the country, the polling agency said. In a hypothetical head-to-head match-up, PPP said Daley would lead Quinn 37 percent to 34 percent.
Daley, son and brother of longtime Chicago mayor Richard J. Daley and Richard M. Daley, succeeded current Chicago Mayor Rahm Emanuel as Obama's chief of staff. Daily also was commerce secretary under President Bill Clinton.
Illinois Attorney General Lisa Madigan also is mulling a run for the Democratic governor nod, but it was unclear when she would decide, the Chicago Tribune reported.
"I can control what I can control," Daley told the Tribune Monday. "I'm not going to get into what-ifs: What if this person runs, doesn't run, wins this? I can't deal with that anymore, and I'm not going to."