One senior administration official said Friday that it's clear Kelly will be leaving, though it's not certain that the departure was imminent as CNN reported. Nick Ayers, the vice president's chief of staff, is seen as a leading candidate.
Trump, a freewheeling former businessman, brought Kelly in a year ago to restore order to his often chaotic White House, but clashed repeatedly with him in recent months.
This story is developing and will be updated.
Trump said the date of transition is "to be determined".
Besides the internal conflicts, Kelly has also done his share of filling headlines for his own actions, from his comments about the Civil War and immigration to poor phone security (a running theme in Trump's White House) to his penchant for being captured in various poses of distress during Trump appearances. Trump has chafed at Kelly's management style and resisted some of his moves to instill discipline in the West Wing and contain chaos.
Kelly "responded to a narrow set of questions" in recent months related to potential obstruction of justice, the TV network said, citing three sources.
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Trump has been advised to bring on a chief of staff better suited to and familiar with the rough and tumble of a re-election campaign.
According to almost a dozen current and former administration officials and outside confidants, Trump has even begun telling people to contact the man long viewed as Kelly's likely successor.
Mr Trump initially nominated Mr Kelly to oversee Homeland Security before promoting him to chief of staff last July, replacing Reince Priebus.
Trump is actively discussing a replacement plan, though a person involved in the process said nothing is final right now and ultimately nothing is final until Trump announces it. Kelly, who had hired Porter, initially defended him as "a man of true integrity and honor". Kelly, however, only joined as chief of staff in July past year. 'I appreciate his service very much'.
He announced Friday that he'll nominate William Barr, who served as attorney general under President George H.W. Bush, to the same role in his administration.
He said Dunford congratulated Milley on his nomination.