Washington  - Thomas Daschle has withdrawn his name from consideration as President Barack Obama's health secretary amid a tax scandal, a White House spokesman confirmed Tuesday.

Obama accepted Daschle's withdrawal with "sadness and regret," according to a statement cited by US media. Obama as late as Monday had said he "absolutely" supported Daschle's nomination.

Daschle had apologized on Monday for his failure to pay more than 100,000 dollars in taxes related to his use of a chauffeur and private car. He has since paid the taxes back.

Daschle, a former Senate majority leader, is a close friend of Obama's who co-chaired his successful presidential campaign.

Daschle was nominated to lead Obama's effort to reform the US health care system as secretary of health and human services, as well as to head a new White House office on health.

Republicans had expressed concern over the tax issue and Daschle held a closed-door meeting with the Senate Finance Committee on Monday. Democrats had continued to support his nomination.

Daschle said he refused to be a "distraction" for the Obama administration as it tackles health reform, one of the most intractable issues in US politics.

Reforming the health system "will require a leader who can operate with the full faith of Congress," Daschle said in a statement cited by US media. "Right now I am not that leader."

Daschle also came under fire for accepting money to speak before health companies in the past few years, which some politicians criticized as a conflict of interest. (dpa)