A replacement for Kelly, a 68-year-old former Marine general who became Trump's second chief of staff in July 2017, will be announced shortly, Trump added.
Mr Kelly succeeded to a great extent in building a structure of communications and a political operation inside the Presidential team.
Although the Trump administration has a reputation for a higher rate of staff turnover than its predecessors, Kelly's total time of 16 months in the job will not be unusually short in a high-stress position where two years is considered a decent run.
"I appreciate his service very much", Trump said. Vice President Mike Pence's chief of staff, Nick Ayers, is a possible contender, the source said.
USA to suspend nuclear pact over alleged violations
A digest of the top political stories from the Globe, sent to your inbox Monday-Friday. Gerasimov emphasized Moscow's frustration at the move.
Kelly has not yet released a statement regarding his departure from the White House.
Ayers has the support of the president's daughter, Ivanka Trump, and son-in-law, Jared Kushner, but some key West Wing officials will not be welcoming to the hard-charging operative, according to administration insiders. Some lower-level White House staffers believed Kelly had lied to them about when he knew of the allegations and when he made clear to Porter that he'd have to leave.
The political stakes for the White House are rising, as Democrats take control of the House and federal prosecutors inch closer toward implicating the president in crimes related to his election. Trump, however, wants a two-year commitment.
The president chafed, however, against Kelly's attempts to manage his idiosyncratic governing style. And Trump often vacillated between criticizing and praising Kelly, sometimes within minutes of each other.
Seattle expected to land National Hockey League franchise
As CEO Tod Leiweke said, "That's when we all knew that this was the right idea". I know Vancouver's particularly excited about the possibility.
Trump then admitted Kelly would most likely not be with the administration for the 2020 election.
He has spent his entire career in Republican politics - a sharp contrast to the man he would replace, retired Marine Corps general John Kelly - and earned a fortune selling ads to political campaigns.
Kelly was questioned on a narrow set of issue relating to potential obstruction of justice, CNN reported.
Trump, meanwwhile, announced Saturday that he's picked a battle-hardened commander who oversaw troops in Iraq and Afghanistan to be the nation's next top military adviser. Bolton had criticized Department of Homeland Security Secretary Kirstjen Nielsen during an Oval Office discussion about the border, and Kelly stormed out of the West Wing after their profanity-laced argument spilled over into the hallways. After firing his attorney general Jeff Sessions and naming William Barr, Mr Trump is gathering experienced Republican political hands to withstand the legal fight.
Premier League wrap Manchester United battle back to draw with Arsenal
In controversial circumstances, Anthony Martial drew the scores level as United look to come back from going behind yet again. He said: "Even in matches like today where we play well, we always shoot ourselves".
Stephen Bannon - Trump's chief strategist was sacked by Trump in mid-August after clashing with White House moderates.