The source said Rosenstein is not being forced out, and he has conveyed his thinking to the White House.
Barr's Senate confirmation hearing begins January 15, which means a confirmation vote at the earliest would occur in mid-February.
Rosenstein's plans were earlier reported by ABC News.
If confirmed, Barr would then oversee the special counsel's Russia investigation. Rosenstein has managed the investigation since it began in May 2017.
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