''Americans want people of faith to lead their country,'' he said.

When it comes to politics and his religion, Romney said there are three types of people: A very small group who ''will not vote for a Mormon no matter what,'' those who would prefer not to vote for a Mormon but wouldn't count it out, and the great majority of Americans and Republicans ''who frankly couldn't care less what religion I am.''

He said the people of Massachusetts, many of whom are Catholic, fell in the latter, majority group.

Romney is the son of the late George Romney, a popular former Michigan governor who mounted an unsuccessful presidential bid in 1968. He said his father was probably the last candidate who was a member of the Church of Jesus Christ of Latter-day Saints to make a significant run for the White House.

Romney, who will not seek re-election in 2006, did not formally announce his candidacy when he spoke before reporters at a luncheon meeting Thursday. But he didn't rule it out, either. He even made mention of a recent trip to Iowa - where the country's first presidential caucuses are held.

In recent years, Romney has shifted to the right politically.

He changed his position on abortion, for example. As a candidate for U.S. Senate in 1994 against Sen. Edward Kennedy, he refused to say whether he was anti-abortion or in favor of abortion rights.

As a gubernatorial candidate in 2002, he said he did not favor abortion personally, but would veto any changes to the law allowing abortion rights. On Thursday, he said ''I am firmly pro-life.''

He said he would like to see the Supreme Court give states the right to decide their abortion policies individually. For this to happen, the Supreme Court would have to overrule Roe v. Wade, the 1973 landmark decision that legalized abortion nationwide.

Other possible contenders for the 2008 Republican nomination include Virginia Sen. George Allen, Arizona Sen. John McCain, Senate Majority Leader Bill Frist of Tennessee and former New York Mayor Rudolph Giuliani.