The appointment requires no further confirmation. Clinton was recently named U.S. secretary of state.
The announcement comes one day after Caroline Kennedy, daughter of President John F. Kennedy, abruptly withdrew from consideration. :President Barack Obama called Gillibrand to congratulate her and said in a statement that she has "the integrity, character and dedication to public service to help us achieve our greatest goals."
The 42-year-old Gillibrand has been one of the top contenders in Paterson's selection process, along with Kennedy and state Attorney
General Andrew Cuomo. The upstate congresswoman had served as
Cuomo's special counsel when he was housing secretary under President Clinton.
Gillibrand represents New York's 20th congressional district in eastern New York.
Paterson's appointment lasts until 2010, when a special election will be held to fill the final two years of Clinton's term.
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