The London Telegraph reports on a rumored deal that could allow Senator Clinton to exit the Democratic primary race gracefully. According to the report team Obama has been telling their Democratic colleagues Clinton will be given a large role in an Obama administration in moving policy, potentially as Health Secretary and playing a major role in getting any legislation through the Senate.

From the report:

The Obama camp, however, remains nervous about Mrs Clinton’s intentions and ambitions, and is preparing a face-saving package that will allow her to continue to play a role in health care reform, which has been her signature issue for more than a decade. Despite pressure from some Clinton allies, Mr Obama and his advisers do not wish to ask her to be his vice-presidential running mate. “They will talk to her,” one Democrat strategist close to senior figures in the Obama camp told The Sunday Telegraph. “They will give her the respect she deserves. She will get something to do with health care, a cabinet post or the chance to lead the legislation through the Senate.”

Another Democrat who has discussed strategy with friends in the Obama inner circle said that Mr Obama was openly considering asking Mrs Clinton to join his cabinet, alongside two other former presidential rivals: John Edwards, who is seen as a likely attorney general; and Joe Biden, who is a leading contender to become Secretary of State.

While this is moving toward a Democratic “Dream Team” this might well be the plan for an administration that could rally conservatives in the fall.