SAN DIEGO (July 29, 2010)--Ousted Agriculture Department employee Shirley Sherrod says she’ll sue a conservative blogger who posted an edited video of her making racially tinged remarks last week.

Sherrod made the announcement Thursday in San Diego at the National Association of Black Journalists annual convention.

The edited video posted by Andrew Breitbart led Agriculture Secretary Tom Vilsack to ask her to resign, a decision he reconsidered after seeing the entire video of her March speech to a local NAACP group.

In the full speech, Sherrod spoke of racial reconciliation and lessons she learned after initially hesitating to help a white farmer save his home, and the farmer told CNN that Sherrod helped save his farm.

Vilsack and President Barack Obama later called Sherrod to apologize for her hasty ouster. Vilsack has offered her a new job at the department, which she is still considering.

President Barack Obama, meanwhile, says Sherrod "deserves better than what happened last week" when the black Agriculture Department official was ousted in a racial firestorm over selective remarks.

Addressing the National Urban League on Thursday, Mr. Obama said the full story that Sherrod was trying to tell "is exactly the kind of story we need to hear in America."

Sherrod was forced to resign last week after a conservative website posted an edited video of her speaking about race.

Sherrod said the video took her remarks out of context.

When her full remarks were discovered, Agriculture Secretary Tom Vilsack apologized and offered Sherrod a new job at the department.

Mr. Obama called the incident a bogus controversy and bemoaned the prejudices that still hold Americans back.