Carter served as second-in-command at the Pentagon under Leon Panetta and Chuck Hagel, who announced his resignation last week.
Unlike his predecessors, Carter does not have any first-hand military experience. However, he "would bring a wide range of experience to a department confronting multiple crises in the Middle East and preparing to enter a new phase in Afghanistan as the NATO combat mission ends," the CNN said citing US administration officials.
Hagel, a former senator, has served as defense secretary since February 2013. On November 24, a US senior administration offical confirmed Hagel's resignation to Sputnik news agency. According to the official, Hagel would remain as defense secretary until replaced by the US Senate, which is currently switching over to Republican control.
Obama's short list also included Senator Jack Reed, former Pentagon official Michele Flournoy, and Homeland Security Secretary Jeh Johnson, who were later withdrawn from consideration.