"I know that Oprah always makes the best decision for herself," King said. "I can't imagine daytime TV without her -- I really can't!"
On Friday, Reps for Oprah announced that she would decide by the end of November if she wanted to renew her talk show contract, which expires in 2011 (her 25th year on the air), or depart to run her network, OWN.
Added King, "She's mulling it over, she has lots of options, she has lots of opportunities and she will decide. She is still writing it all down, trying to figure it out."
King also dished on Winfrey's upcoming "must-see" interview with Sarah Palin, who is appearing Nov. 17 to promote her memoir, "Going Rogue: An American Life."
"Oprah's in the process of reading the book, so she will be very well prepared by the time she sits down with Sarah Palin," King said. "She will come ready and I think so will Sarah Palin."
Oprah and Palin have opposing political viewpoints, but King says not to expect "explosions."
"It's the interview that everybody wanted to get, and she'd invited Sarah Palin on the show before. Sarah said, 'No,' but I think things change when you have a book..." King went on. "I'm expecting intelligent conversation between two talented women."