Mr. Trump, speaking with reporters on the White House lawn before departing for the Army-Navy football game in Philadelphia, said that he would announce a replacement for Mr. Kelly in the next day or two.
Twice in the span of four months, Kelly denied reports that he'd called the president an "idiot", including one account in journalist Bob Woodward's book about the Trump administration, which was released in early September.
Before his resignation, Kelly had reportedly raised the ire of First Lady Melania Trump and her staff over a range of issues, from travel arrangements to promotions.
"The president and Nick are still working on the specific terms of him taking over", said the official, adding that Ayers had been planning to leave Pence's office and the White House this month.
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Kelly and Trump have grown tired of each other.
A 36-year-old father of triplets, Ayers had long decided on leaving the administration and moving his family back to Georgia, a senior White House official told CBS News. But that largely depends on if Ayers actually wants to move up and if Pence is willing to let him go. But this past summer, Kelly sought to quiet speculation that he was nearing the exit because of tensions with Trump by telling senior staff that he meant to remain as chief of staff through Trump's 2020 reelection campaign. It was widely believed that Kelly would provide a stabilizing force in the ever-tumultuous White House.
In November, it was first reported that Kelly may leave due to repeated clashes with first lady Melania Trump.
Trump is further expected to announce Heather Nauert as the new United States ambassador to the UN on Friday, replacing Nikki Haley.
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The case has roiled markets already hammered by months of rising trade tension between the world's two largest economies. It comes as heightened economic tensions between the United States and China seemed to be cooling - at least a little.
On Friday, reports said Kelly had stopped communicating with Trump as relations between the pair strained further.
Kelly has brought order to a chaotic White House, which has seen a historically fast turnover in multiple high-profile jobs-like White House communications director, national security adviser, and more. Bolton had criticized Department of Homeland Security Secretary Kirstjen Nielsen during a discussion about the border, and Kelly stormed out of the West Wing after their profanity-laced argument.
At times, Kelly was the source of his own downfall. Kelly's shifting accounts caused his credibility inside the West Wing to plummet, and it never truly recovered, according to officials. Just weeks after Kelly arrived, Trump told reporters that both sides were responsible for the violence in Charlottesville, triggered by marches led by white supremacist groups.
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