New York Governor Eliot Spitzer told top aides this morning he will be linked to a prostitution ring, a source told the New York Times today. Spitzer canceled his events for the day and has remained with aides in his apartment in Manhattan. After the Times asked about the scandal, Spitzer scheduled an announcement for 2:15 p.m., about 15 minutes ago.

A federal prosecutor arrested four people in connection with a high-priced prostitution ring, one in which Spitzer is expected to be named, another source told the Times.

Spitzer has had a rough first year in office, buffeted by scandals involving his battles with Senate Republican leader Joseph Bruno and by a number of failed legislative initiatives. If he were to resign, Lieutenant Governor David Paterson, also a Democrat, would take over the governor's mansion.

Update: Spitzer issued his statement just now, nearly an hour later than planned. He did not resign, saying he needs time to rebuild his family. The Republican Governor's Association has called on Spitzer to resign.