CORRECTED - UPDATE 1-Obama picks LaHood for transportation-source

(Corrects spelling of Durbin in last paragraph)

WASHINGTON, Dec 17 (Reuters) - U.S. President-elect Barack Obama has selected U.S. Rep. Ray LaHood for transportation secretary, which would make him the second Republican in the Cabinet, a senior Democrat said on Wednesday.

Obama offered LaHood, 63, of Illinois the post and the lawmaker, who is retiring from Congress, is expected to accept. A formal announcement is expected within days, the senior Democrat said.

LaHood would join Defense Secretary Bob Gates as the second Republican in Democrat Obama's Cabinet.

A spokeswoman for LaHood could not immediately be reached for comment.

LaHood, a Lebanese-American, was described by congressional and other officials as a moderate and a friend of Obama chief of staff Rahm Emanuel.

President George W. Bush also used the transportation slot to reach across the partisan aisle in 2001 when he nominated another congressional veteran, Norman Mineta.

LaHood was part of the Republican revolution in 1994 that saw his party win control of the House of Representatives for the first time in 40 years.

Democrats won back the House in 2006 and LaHood decided not to run for re-election this year, telling Reuters in an interview, "It's not any fun being in the minority."

LaHood has had a good working relationship with assistant Senate Democratic leader Richard Durbin of Illinois, who served as national co-chairman of Obama's presidential campaign. (Editing by Eric Walsh)