"The time has come. That flag, while an integral part of the past, does not represent the future of our great State," Haley said.
"We are not going to allow this symbol to divide us any longer. The fact that people are choosing to use it as a sign of hate is something that we cannot stand. The fact that it causes pain to so many is enough to move it from the capital grounds. It is after all a capitol that belongs to all of us," the 43-year-old Governor said.
The police arrested a 21-year-old Dylann Roof on the charges of killing people.
Haley's move was immediately welcomed by leaders across political spectrum.
Hillary Clinton, the Democratic presidential candidate, was quick to support the move.
Haley, she wrote on twitter, is right to call for removal of a symbol of hate in South Carolina.
"As I've said for years, taking down Confederate flag is long overdue," Clinton said.
"Kudos to Nikki Haley and all the South Carolina leaders standing with her for doing the right thing," tweeted Jeb Bush, the top Republican presidential candidate.
The House of Representatives Speaker, John Boehner, commended Haley and other South Carolina leaders in their effort to remove the Confederate flag from Statehouse grounds.
"Removing the flag is an act of healing and unity, that allows us to find a shared purpose based on the values that unify us," said Rick Perry, another Republican presidential candidate.
"I am very proud of the statements by South Carolina Governor Nikki Haley and Senators Lindsey Graham and Tim Scott supporting the removal of the Confederate battle flag from the state Capitol grounds," said Perry.
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