Sen. Evan Bayh (D-Ind.) called on Sen. Joe Lieberman (I-Conn.) to apologize for his attacks on Barack Obama, saying doing so would temporarily let him retain a key chairmanship position next Congress.

Bayh warned that stripping Lieberman of his chairmanship position on the Homeland Security and Governmental Affairs Committee could prompt the Democrats’ 2000 vice presidential nominee to side with the GOP on close votes next Congress or resign his Senate seat. If he resigns, Connecticut’s Republican Gov. Jodi Rell would replace Lieberman with a temporary two-year appointment, likely a GOP senator.

Bayh said that Lieberman must first issue a “sincere apology” for campaign attacks warning of the perils of an Obama presidency and a large Democratic majority in Congress. He said Democrats should allow him to keep his chairmanship on the condition that he would not use his subpoena power and influence as chairman to undermine Obama’s presidency. Otherwise, Democrats would take away his gavel at any point next Congress, Bayh warned.

Bayh said Democrats should tell Lieberman sternly, “Look, we’re giving you a chance here, but if you don’t do the right things as chairman, and we see any continuation of this kind of behavior ...the game is up at that point.”

Lieberman’s fate will be put to a test next Tuesday, when the Democratic Caucus is expected to hold a secret vote to decide whether he should continue to serve as chairman, or face lesser punishment for his outspoken advocacy for Sen. John McCain’s (Ariz.) presidential bid, including a prime speaking spot at the Republican National Convention.

After his election last week, Obama called Senate Majority Leader Harry Reid (D-Nev.) and told him that he wants Lieberman to remain in the Democratic Caucus, a call that has been echoed by several senior Democrats. Democrats know that taking Lieberman's gavel away will most likely prompt him to leave the Democratic Caucus and organize with Republicans, a situation they are trying to avoid since they lack a filibuster-proof majority.

“In the last 36-48 hours, there is emerging desire for the top priority to keep him in the caucus,” one Democratic aide said. “Whereas a week or two months ago, it seemed like everybody was thirsting for blood and demanding his gavel.”

At the same time, Democrats don’t want to appear weak-kneed in dealing with a renegade member of their party who launched attacks against Obama and the Democratic Party throughout the contentious presidential campaign.

One option is to allow him to remain chairman of the Homeland Security and Governmental Affairs Committee, but strip him of his seniority on the Armed Services Committee. Lieberman, whose hawkish stance on the Iraq war began to strain his alliance with the Democratic Party, is in line to become chairman of the Armed Services Committee, if Sen. Carl Levin (D-Mich.) steps down from his post. If Levin leaves, the next most senior members are Sens. Edward Kennedy (D-Mass.) and Robert Byrd (D-W.Va.), but their health casts doubt on their ability to run the high-profile committee.

He also is the third most senior Democratic Caucus member to sit on the Environment and Public Works Committee, but his position falls in line with Democrats on environmental issues. He also sits on the Small Business Committee, and is in line to take that chairmanship as well.

Bayh said that allowing Lieberman to stay in the caucus and keep his chairmanship would be the best way to advance Obama's ambitious agenda next Congress.

“I honestly think we have a better chance of getting unity ... if we try to have some reconciliation here, rather than resorting to revenge right off the bat,” Bayh said.