CHICAGO: An internal probe has cleared Mr Barack Obama and his transition team of any inappropriate contacts with the Illinois governor accused of plotting to sell off the President-elect's Senate seat.

The report said Mr Obama's incoming White House chief of staff Rahm Emanuel did speak to accused Governor Rod Blagojevich about who might be a good pick for the seat, but there was no talk of any benefits linked to a particular choice.

'My inquiry determined there was nothing at all inappropriate about those conversations,' Mr Obama's future White House legal counsel Greg Craig told reporters on Tuesday.

The saga has been a distraction for the President-elect as he prepares to take office on Jan 20, testing his campaign offer of transparent leadership and focusing attention on the often ugly Illinois political scene where he made his name.

Mr Craig released the results of the probe after poring over accounts of contacts between transition team staff and the office of Blagojevich, who is facing corruption charges.

Mr Craig said the evidence supported Mr Obama's statement on Dec 11 that he had never spoken to the governor about the fate of his Senate seat, which he relinquished after winning the election on Nov 4.

'In addition, the accounts contain no indication of inappropriate discussions with the governor or anyone from his office about a 'deal' or a quid pro quo arrangement in which he would receive a personal benefit in return for any specific appointment to fill the vacancy,' the report said.

It revealed that Mr Obama was interviewed about the case by US Attorney Patrick Fitzgerald last week, as were Mr Emanuel and another future top White House aide, Ms Valerie Jarrett.

It said Mr Emanuel had one or two telephone conversations with the Illinois governor and about four chats with his chief of staff.

But the report said there was no discussion of potential benefits for Blagojevich depending on his choice of senator, and Mr Craig said Mr Emanuel had simply passed on the names of qualified candidates.

Ms Jarrett spoke to Blagojevich briefly only after ruling herself out of the running for the Senate seat, and Mr Obama's friend Eric Whitaker was approached by deputy Illinois governor Louanner Peters, Mr Craig said.

But Mr Obama told Mr Whitaker that he had no interest in becoming involved in the governor's legal duty of selecting a new senator, the report said, adding that Mr Whitaker had passed the message on.

Mr Obama is on vacation in Hawaii and is not expected to directly address the report.

Mr Craig told reporters that no one in Mr Obama's Chicago inner circle was aware that Blagojevich appeared to be trying to parlay the Senate seat for personal gain until he was arrested for questioning on Dec 9.

The report is unlikely to quell interest over the Blagojevich saga however, as it did not include details of transcripts of the Emanuel calls, likely caught on wiretaps of the governor's office carried out by the Federal Bureau of Investigation (FBI).

Mr Craig said it would be up to prosecutors to offer those details - a process unlikely to take place until any trial of Blagojevich, who last week vowed to fight to clear his name and brushed aside calls for his resignation.

Federal prosecutors accuse the Democratic governor of engaging in 'a political corruption crime spree' they say was exposed by wiretaps of the governor's home phone and bugs at his campaign office.

In details of tapes released by prosecutors, Blagojevich discussed ways he could swap an appointment to Mr Obama's former Senate seat for a Cabinet post, ambassadorship or high-paying job for himself or his wife.

Blagojevich's lawyers have now indicated that, with the scandal swirling, the governor does not intend to exercise his right to name Mr Obama's successor.