Alaska Gov. Sarah Palin announced Friday afternoon she will resign from office on July 26 and return to private life. It was a stunning decision by last year's Republican vice presidential candidate and a leading contender for the 2012 presidential race.

Palin made the announcement at a lakeside news conference in her hometown of Wasilla, Alaska. "We know we can effect positive change outside government at this moment in time on another scale and actually make a difference for our priorities," she told supporters.

So what is next for Palin? There are rampant rumors in Alaska's political circles that the almost former governor has been offered a job at the Fox News Channel. Given that channel's support of Palin, and her ability to make headlines, it seems like a natural fit. It would also be a good platform for her to build support for some future political bid.

If the rumor is indeed true, it's not clear what role at Fox News would be appropriate for her background. She seems unlikely to be able to handle her own full-fledged talker without some serious training. But a producer at a rival cable news channel said she would probably do well as a general commentator/guest for the network.

As for the position of Alaska's governor, that role will be filled by Lt. Gov. Sean Parnell.