Another Kennedy could be headed to the Senate.
Paterson's office denied the report on Friday, saying that the governor is seeking counsel from a range of individuals before he announces his choice.
"The governor has not yet reached out to any potential candidates," Paterson spokesman Errol Cockfield said in a written statement. "He has been approached by several candidates. Any discussions related to that selection are private and the governor will not comment about speculation before a decision is made."
Paterson will appoint Clinton's replacement upon her resignation. Whoever he names will face a special election in 2010.
Caroline Kennedy, the only surviving child of President John F. Kennedy, is an author and attorney. She has no formal political experience, but she co-chaired President-elect Barack Obama's vice presidential search committee.
If Kennedy is appointed, she would join her uncle, Massachusetts Sen. Ted Kennedy, in the Senate and reclaim the seat once held by her uncle, Robert F. Kennedy. Her cousin, Robert Kennedy Jr., reportedly is also interested in Clinton's seat.
Political pundits considered the state attorney general, Andrew Cuomo, to be the leading contender to take over the seat.