But news website The Daily Caller - which has close ties to the Trump administration - reported one White House source had dismissed claims of Kelly's departure as 'absolutely untrue'. The president's team is simultaneously girding to deal with a Democratic-led House of Representatives, a bruising 2020 re-election campaign and political warfare over the coming report from Special Counsel Robert Mueller.
According to Axios, Kelly will be replaced by Nick Ayers, who now works as chief of staff for Vice President Mike Pence.
Trump and Kelly's relationship has been strained for months - with Kelly on the verge of resignation and Trump almost firing him several times. The lights were off in his West Wing office.
The White House senior staff meeting Friday morning was canceled, according to three officials. Trump has taken the unusual step of inviting Ayers to recently accompany him on Air Force One, even without Pence present, the people said.
Among White House officials, however, there is broad consensus that his days as chief of staff are numbered.
Kelly, a retired four-star Marine general, has been the president's top aide since late July 2017.
Trump often vacillated between criticizing and praising Kelly, sometimes within minutes of each other.
"She's very talented, very smart, very quick, and I think she's going to be respected by all", Trump said. Investigators reportedly wanted to know about reports that Trump had attempted to fire the special prosecutor.