Recent polls of likely Iowa caucus-goers have placed the New Mexico governor fourth among the Democratic White House hopefuls. About 10 percent have said they plan to caucus for Richardson.
Should Richardson's supporters fail to gain support from 15 percent of caucus-goers at their precincts, they'll be asked to regroup to support another candidate or join an undecided group.
Richardson, a former U.N. ambassador and congressman, has said his experience makes him the best candidate, while Obama, a first-term U.S. senator from Illinois, has framed himself as a Washington outsider hungry for change.
Obama spokesman Josh Earnest also bristled at the idea that the Obama and Richardson had cut a deal.
"We hope everyone who is not caucusing for Barack Obama as their first choice will caucus for him as their second choice," Earnest said.
