UPDATE, 12:28 p.m.: Gov. David Paterson (D) made his appointment of Rep. Kirsten Gillibrand to the Senate vacancy caused by Hillary Clinton's ascension to Secretary of State official moments ago in Albany.

"I didn't ask for this responsibility but it is my privilege and honor to execute our state statute," said Paterson at a press conference in which he was flanked by Gillibrand as well as Sen. Chuck Schumer, former Sen. Alfonse D'Amato (R) and many other Empire State politicos.

"She is dynamic, she is articulate, she is perceptive and she is outspoken," Paterson said of his pick.

Gillibrand thanked Paterson for "this incredible honor" and pledged to partner with Paterson to solve the budget crisis gripping New York. Gillibrand acknowledged she is not a well known name statewide but said she would use the next two years to get to know the "diverse views and diverse voices" of the state.

Original Post

New York Gov. David Paterson has decided to appoint Rep. Kirsten Gillibrand to fill the open Senate seat left by Hillary Rodham Clinton's appointment as secretary of state, and will formalize the decision today in Albany, according to four sources familiar with the decision.

Gillibrand was reelected to a second term in her Albany-area district last November and was long seen as the potential pick that could help Paterson most as the governor looks to a bid for a full four year term in 2010. Paterson had made clear he favored a woman and by naming an Upstate member of Congress the governor can expand his potential appeal in that crucial swing area.

The announcement of Gillibrand as Paterson's pick will come 36 hours after Caroline Kennedy removed her name from consideration citing personal reasons. Kennedy's decision to actively campaign for the appointment was greeted with a crush of national media attention and she struggled at times as she adjusted to the rigors of public life.

The drama surrounding Kennedy insured that all of the other potential picks -- including state Attorney General Andrew Cuomo, a political star in his own right -- received next-to-no publicity.

Gillibrand was regarded as an afterthought by many -- without the star power of Kennedy or Cuomo and in only her second term in the House. But, her profile as an Upstate candidate with the ferocious fundraising ability ($4.7 million raised in the 2008 election cycle) of a New York City politician may have helped her secure the appointment. Fundraising is considered critical to the statewide success of the appointed senator as Gillibrand will have to run in a 2010 special election and then again in 2012 for the full six-year term.

Republicans had privately hoped that Paterson would choose Kennedy, believing that the she could be beaten in a general election. Rep. Peter King of Long Island is seriously considering the race.

Gillibrand's appointment will set off a special election to fill her GOP-leaning House seat.