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CHICAGO (CBS) ― Businessmen with ties to both Illinois Gov. Rod Blagojevich and U.S. Rep. Jesse Jackson discussed raising $1 million for Blagojevich to help persuade him to appoint Jackson to President-elect Barack Obama's vacant Senate seat, according to a published report.

Citing unnamed sources, the Chicago Tribune reports in a story for Friday's editions that businessman Raghuveer Nayak and Blagojevich aide Rajinder Bedi told attendees at an Oct. 31 meeting that they needed to raise the money for the governor to ensure Jackson's appointment.

"Raghu said he needed to raise a million for Rod to make sure Jesse got the seat," an unidentified source who attended the meeting told the Tribune. Blagojevich also attended the meeting, which was sponsored by Nayak, an Oak Brook businessman.

A message left at a listing for Raghuveer Nayak in Oak Brook was not immediately returned early Friday. No published listing for Bedi could be found.

Blagojevich was arrested Tuesday on federal corruption charges that allege, among other things, a brazen scheme to put Obama's vacant Senate seat up for sale.

According to the FBI complaint, the Oct. 31 meeting took place the same day federal prosecutors intercepted a conversation in which Blagojevich claims he'd been approached by a representative for an unnamed "Senate Candidate 5" who offered cash in exchange for the Senate seat.

On Wednesday, it was revealed that Jackson was the candidate.

"We were approached 'pay to play,"' Blagojevich said in the call. The candidate would raise $500,000 for Blagojevich, and an emissary would raise an additional $1 million, according to the conversation.

Jackson spokesman Rick Bryant told the Tribune that while Jackson discussed the Senate seat with Nayak, he never asked him to do anything.

Nayak, 54, has raised hundreds of thousands of dollars for Blagojevich and is also close to the Jackson family. Bedi has also been a Blagojevich fundraiser.

The Oct. 31 meeting led to a Blagojevich fundraiser held Saturday that was co-sponsored by Nayak. The governor attended, as did Jackson's brother Jonathan, who went into business with Nayak several years ago, according to the newspaper report.

Two days later, Jackson met with Blagojevich to discuss the Senate seat.

The momentum is building to impeach Gov. Rod Blagojevich as he continues to hold onto his $177,000-a-year job as chief executive of the State of Illinois three days after being arrested on corruption charges.

CBS station WBBM-TV reports Blagojevich has said nothing since he was arrested on Tuesday but he is reportedly aware of the chorus of calls for his resignation.

The governor was arrested Tuesday on charges that he put Obama's Senate seat up for sale.

State Attorney General Lisa Madigan said the best thing would be for Blagojevich to resign. But said she's ready to take action.

"I have the opportunity to go to our Illinois Supreme Court and ask them to declare our governor is unable to serve and put in our lieutenant governor as acting governor," Madigan told CNN.

She said she "won't wait terribly long" but wants a signal from lawmakers if they will move quickly on impeachment proceedings.

Legislative leaders planned a special session Monday to strip Blagojevich of his power to pick a new U.S. senator, putting the decision in the hands of Illinois voters instead. Lawmakers also prepared to discuss the possibility of impeachment.

Meanwhile, Lt. Gov. Pat Quinn predicted that if Blagojevich doesn't resign, it won't be long before he's either impeached or taken to the state's highest court by Madigan.

"I really think that the governor needs to resign and step aside right now and I think that will happen," Quinn told NBC's "Today" program Thursday. "If the governor doesn't act he will be impeached."

Quinn also said that if he became governor, he may opt to appoint Obama's replacement rather than wait for a special election.

He said that while he's generally in favor of letting voters choose public officials, the economic crisis makes it vital for the state to have two senators in place.

Blagojevich's lawyers have insisted he is innocent, and stressed that he still has important work to do for the state of Illinois.

Blagojevich's decision to show up for work Wednesday like it was another day at the office angered much of the state's political establishment, and Obama and U.S. Senate leaders demanded that he step down. The prospect that the second-term Democratic governor might still try to appoint someone to the Senate also loomed.

"He appears to listen to no one, and his conduct becomes more outrageous as time goes on," said Steve Brown, spokesman for Illinois House Speaker Michael Madigan.

The first fallout from the scandal also emerged Wednesday, with U.S. Rep. Jesse Jackson Jr. denying any misconduct while confirming that he is the Senate candidate mentioned in the federal charges as someone Blagojevich thought would pay money to be appointed to the seat. Jackson, the son of the Rev. Jesse Jackson, said he had been assured by prosecutors he was not a target of the investigation.

On Tuesday, FBI agents arrested Blagojevich at his home and took him away in handcuffs. Prosecutors released a thick document that included excerpts of wiretapped conversations in which the governor allegedly schemed to enrich himself by offering to sell Obama's Senate seat for campaign cash or a lucrative job inside or outside government.

They also alleged he pressured the Tribune Co. to fire editorial writers at the Chicago Tribune after several negative editorials about Blagojevich.

Blagojevich is charged with conspiracy and solicitation to commit bribery, punishable by up to 20 years in prison and 10 years, respectively.

More than 24 hours after the arrest, Obama joined other prominent Democrats in calling for Blagojevich's resignation.

"The president-elect agrees with Lt. Gov. Quinn and many others that under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois," Obama spokesman Robert Gibbs said.

Asked whether Obama supports a special election, Gibbs said Obama believes the Illinois General Assembly should consider how to fill the Senate seat and "put in place a process to select a new senator that will have the trust and confidence of the people of Illinois."

Senate Democrats were more pointed in a letter to the governor: They "insist that you step down" and not name anyone to replace Obama. An appointment by a new governor would "be the most expeditious way for a new senator to be chosen and seated in a manner that would earn the confidence of the people of Illinois and all Americans," wrote Majority Leader Harry Reid of Nevada and the party's second-ranking leader, Sen. Richard Durbin of Illinois.

They suggested the Senate might reject anyone chosen by Blagojevich. The Constitution gives the Senate authority to refuse to allow a member to be sworn in.

It was unclear what incentive the governor had to give up his office.

A resignation might make him appear guilty. The office also gives him a certain amount of clout, which can help him raise money for his defense.

Republican Sen. Christine Radogno said it's possible Blagojevich would use his resignation as a bargaining chip with prosecutors and agree to step down in exchange for leniency.

When Illinois lawmakers meet Monday, they'll consider changing state election law to fill Senate vacancies by special election, rather than leaving the decision to the governor. But holding an election could take months and give Republicans a shot at capturing a seat now in Democratic hands.

Brown, the spokesman for the House speaker, noted that any change in the law would go to the governor's desk, where Blagojevich could let it sit and still pick a senator.

"Despite our best efforts, the governor could play hide the ball. That is an inescapable reality," Brown said. "I'm hoping that's not the case."

Brown said the speaker hasn't ordered staff to begin researching impeachment but that individual legislators are doing so. The speaker's office also compiled a memo earlier this year on arguments for impeaching the governor.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)