It said the report was based on comments by “people familiar with the matter”.
The Biden administration has made no comment on the matter but the Associated Press has reported that Ms Kennedy is is expected to be appointed ambassador to an Asia-Pacific nation.
If appointed, Ms Kennedy would take the Canberra appointment at a time of rising Asia Pacific tensions.
The US and its allies including Australia are embroiled in trade and diplomatic disputes with China.
Ms Kennedy served as former president Barack Obama’s chief envoy to Japan for much of his second term in the White House.
Ms Kennedy, a scion of one of America’s most high-profile political families, threw her support behind US President Joe Biden relatively early in the crowded 2020 Democratic primary process.
In a Boston Globe editorial to announce her endorsement, she praised Mr Biden for his long career as a public servant and fondly recalled Mr Biden visiting Tokyo as vice-president while she was ambassador.
“He radiated American optimism and generosity of spirit. He made clear that America would always stand by our allies, and that we were committed to keeping the region peaceful and prosperous. He delivered tough messages as well, but he did it in private, with skill and respect.”
Ms Kennedy, along with her late uncle Senator Ted Kennedy, also offered a critical early endorsement to Mr Obama in his 2008 run for the White House.
Mr Biden is expected to soon announce his first major tranche of political ambassadorial nominations, according to White House officials.
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