Signs that Washington was edging away from the long-time Yemeni president came on another day of bloodshed when Yemeni security forces shot dead at least 17 protesters and Gulf states offered to mediate the crisis.
"We are obviously concerned that in this period of political unrest that Al-Qaeda and other groups will attempt to take advantage of that power vacuum," said White House spokesman Jay Carney.
"That is one of the reasons why we urge political dialogue to take place and a timetable for this transition that President Saleh has talked about to be begun," Carney said.
The White House fielded questions on Yemen after the New York Times reported that the Obama administration had shifted its position and concluded that Saleh would not bring about needed reforms and needed to be eased from power.
Yemen under Saleh has been a vital US partner in cracking down on Al-Qaeda in the Arabian Peninsula, which has been blamed for several thwarted attacks directed at the US mainland.
"We believe we can and will work with the government of Yemen on these important matters," Carney said, but significantly did not lock US cooperation onto Saleh.
"We are not focused on one individual," he said.
The New York Times said earlier that the United States had decided to ditch its support for Saleh, who has been in power since 1978, and had concluded that it was time for him to go amid mass opposition protests.
US officials have told allies that they see Saleh's position as untenable due to the widespread protests, and believe he should leave office, the paper said, adding talks over Saleh's departure began more than a week ago.
A State Department spokesman repeated that the outcome of the crisis was in the hands of "the Yemeni people," adding Washington was continuing to consult with both sides.
"There's a gap between what President Saleh said and what the people have asked for," spokesman Mark Toner said. "In our discussions with the government and with the opposition... we're helping or talking about bridging that gap."
Talks center on a proposal for Saleh to surrender power to a provisional government under his vice-president until there can be new elections.
Obama administration officials did not confirm the details of the report, but said it was talking to both the opposition and the government in Yemen.
"There's a gap between what President Saleh said and what the people have asked for," said Mark Toner, a State Department spokesman.
"Certainly, in our discussions both with the government and with the opposition ... we're helping or talking about bridging that gap."
Another official said Saleh needed to "satisfy the opposition ... whether that means leaving ... then that means leaving."
Other administration officials offered insight into Washington's thinking, saying the political uncertainty in Sanaa had been having a detrimental impact on the security situation throughout the country.
"Until President Salih is able to resolve the current political impasse by announcing how and when he will follow through on his earlier commitment to take tangible steps to meet oppositi on demands, the security situation in Yemen is at risk of further deterioration," an official said.