The announcement came amid reports that Bannon has been fired by US President Donald Trump.
"White House Chief of Staff John Kelly and Steve Bannon have mutually agreed today would be Steve's last day," White House Press Secretary Sarah Sanders said in a statement.
"We are grateful for his service and wish him the best," Sanders said, thus bringing down the curtains on Bannon, known for his right-wing views, who played a key role in electoral victory of Trump last year.
With this, Bannon became the third high-profile White House official to have been fired in recent weeks.
The White House announcement comes three days after Trump said of Bannon, "I like him, he's a good man".
He also said that press treats him "very unfairly".
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