"He's in it, he's planning to put the team together, but he's said if his numbers don't improve by the beginning of the year, he would have to reassess his campaign," one Democratic source told the newspaper.
Paterson is also reportedly worried about how his fundraising numbers will stack up against those of popular New York Attorney General Andrew Cuomo, who many political observers expect to run.
Among those who would be happy with a reassessment by Paterson, who has said he is fully planning a run, is the Obama administration, which has pressured the governor to pull out of the race.
A Quinnipiac poll last week found that Paterson's approval rating sits at a dismal 30 percent. In a hypothetical matchup with Cuomo, Paterson lost 61 percent to 19 percent.
And while Cuomo was found to be ahead of potential Republican opponent Rudy Giuliani 50 percent to 40 percent, the poll found Giuliani topping Paterson 54 percent to 32 percent.
Paterson is reportedly hoping to regain some popularity by stressing his handling of New York's budget crisis and support for gay marriage legislation and the reform of drug laws.