Robert Gibbs, the incoming White House press secretary, said "yes" when asked if Obama believed Blagojevich should now step down.

"The president-elect agrees with Lieutenant Governor (Pat) Quinn and many others that under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois," he said.

Obama said Tuesday he had had "no contact" with Blagojevich over the fate of his vacated Senate seat for Illinois, after prosecutors accused the governor of trying to sell off the seat or extract an appointment for himself.

But while saying he was "saddened" by the affair, the president-elect had refused to comment further.

Top Illinois figures are now calling for the state legislature to convene a special election, to take the selection of a new senator out of Blagojevich's tainted hands. The idea won backing from Obama.

"The president-elect believes that the general assembly should consider the issue and put in place a process to select a new senator that will have the trust and confidence of the people of Illinois," Gibbs said.

Blagojevich, who was released on bond by a Chicago judge Tuesday, denies wrongdoing and has refused to resign over what prosecutors called "a political corruption crime spree."

The 51-year-old governor and his chief of staff, John Harris, 46, face up to 30 years in jail on charges of conspiracy to commit mail and wire fraud, and solicitation of bribery.

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