(Updates with details)

By Susan Cornwell

WASHINGTON, Dec 6 (Reuters) - The U.S. Senate on Wednesday overwhelmingly confirmed Robert Gates as the next defense secretary, replacing Donald Rumsfeld, an architect of the increasingly unpopular Iraq war.

The Senate voted to approve President George W. Bush's nominee only 24 hours after Gates won the unanimous endorsement of the Armed Services Committee -- and just as a long-awaited bipartisan report arrived, urging more diplomacy and fewer U.S. troops in Iraq.

Senators from both parties praised the ex-CIA chief's candor; Gates had bluntly told them the United States was not winning the war in Iraq.

"Dr. Gates spoke with candor -- a candor that has been sorely missing from the Department of Defense under this administration," said Sen. Edward Kennedy, a Massachusetts Democrat. "He recognized the high price that our troops are paying for the current policy."

But senators also emphasized the daunting task before Gates in addressing Iraq, and their awareness that he must work with Bush.

"Dr. Gates is poised to take an extraordinarily difficult job at one of the most dangerous times in American history," Sen. Jack Reed, a Rhode Island Democrat, said.

"We see the possibilities of a new chapter ... but it is up to the commander in chief to structure a change in policy," added Sen. Arlen Specter, a Pennsylvania Republican.

Gates must be sworn in before taking up his duties at the Pentagon, where he says Iraq will be his first priority; he plans to travel to Baghdad soon, where he hopes to talk to U.S. commanders.

Bush nominated Gates, a former CIA director during the administration of the president's father, a day after voters swept Republicans out of power in an election driven in large part by frustration over the Iraq war.

In the more than three years since the U.S.-led invasion, the conflict has claimed the lives of more than 2,900 Americans and at least tens of thousands of Iraqis.

Bush has said he will consider alternatives, including those offered on Wednesday by the bipartisan Iraq Study Group. Gates said he believed all options were on the table.

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