Wallström, who leaves her second EU commission post at the end of January, has been mulling over what to with her future, with many speculating that the well-liked Social Democrat could replace Mona Sahlin as party leader if the Democrats lose the general election next Autumn, speculation she has always refuted.
Commenting to the Svenska Dagbladet in reaction to her government nomination for the UN post , she said " I am honoured and happy but there are number of other well qualified candidates for the job.
Wallström, who has been a strong campaigner on women's rights issues and recently has campaigned to get more women mps into the European parliament, said if appointed, she still planned to campaign for her party in the run up to the election.
Sweden's foreign minister Carl Bildt said "This is a new position we have instigated and therefore it is important for us to nominate a strong candidate. She is well qualified for the job."
It's now up to the UN's general secretary Bank KI Moon to decide.
Meanwhile Svenska Dagbladet writes that fellow Social Democrat and former Justice Minister Thomas Bodström will take a break from politics after the next election. He'll live in the United States with his family.