That seems to be the rumor, according the state’s Attorney General:
WASHINGTON, Dec 14 (Reuters) – Scandal-plagued Illinois Governor Rod Blagojevich could announce on Monday that he will leave office, the state’s top legal officer said on Sunday.
Blagojevich was arrested last week on charges of swapping political favors for cash, including an attempt to sell the U.S. Senate seat being vacated by Barack Obama following his November presidential election victory.
“We have heard that there is a possibility that tomorrow he will make an announcement where he will step aside,” Illinois Attorney General Lisa Madigan told NBC’s “Meet the Press.”
“I don’t know if that means he will resign or take another option that is provided under the Illinois constitution where he can voluntarily recognize that there is a serious impediment to his ability to carry out his duties, and therefore temporarily remove himself,” she said.
This latest rumor may or may not be connected with the report that, yesterday, Blagojevich met privately with one of Chicago’s top criminal defense attorneys. One could speculate that the meeting revolved around the idea that, regardless of the ultimate outcome of the criminal proceedings, Blago’s political career is over.

[...] beginning to look like yesterday’s comments by Illinois Attorney General Lisa Madigan that Rod Blagojevich could resign today were either a [...]