The AP is reporting that two people "close" to Governor Paterson are saying that "they believe" the choice has already been made to fill the senate seat being vacated by Hillary Clinton and that it's Caroline Kennedy.

Meanwhile, the New York Times is reporting that the gov has yet to make up his mind:

Gov. David A. Paterson sought to tamp down some of the political brinksmanship over his selection of a new United States senator, insisting on Thursday that he was still interviewing people for the position and felt no pressure to appoint any particular candidate.

Mr. Paterson’s remarks, which he made to reporters during a New Year’s Day open house for the public at the Executive Mansion, were a sign that he is trying to reassert some control over a process that has been overrun by speculation, highly visible lobbying and harsh criticism.

Mr. Paterson offered a cautionary note for those who might try to influence his decision or divine where his preferences lie.

“There’s one choice. It’s the one the governor will make. And in the end everybody will understand that,” he said.

Recalling a statement by Bill Klem, the legendary baseball umpire, the governor added, “ ‘It ain’t nothin’ till I calls it.’ And that’s how I’m telling you. Pass that along to any of these excited people who think they’re going to influence me.”