Carney is the communications director to Vice President Joe Biden and a former journalist with Time magazine.
The decision is part of a slew of personnel changes at the White House.
Two new chiefs of staff are expected to be announced: current head of the White House Office of Health Reform Nancy-Ann DeParle and current White House director of Scheduling and Advance Alyssa Mastromonaco.
Much like outgoing chief of staff Mona Sutphen, DeParle will focus on policy. DeParle played a key role in ushering Obama's health care initiative.
Mastromonaco is expected to focus more on politics, similar to the role of outgoing deputy chief of staff Jim Messina who will manage Obama's 2012 reelection campaign.
Also, Assistant to the President for Special Projects Stephanie Cutter is expected to be named deputy to senior adviser David Plouffe, and Chief of Staff Bill Daley's longtime aide, David Lane is expected to be named senior staff member.
Rob Nabors, current senior advisor to the White House chief of staff, is expected to become director of legislative affairs. Meantime, the current director, Phil Schiliro, is expected to leave his post after a very busy two years.