CNN quoted two White House sources as saying that Kelly's relationship with the President, often reported as "tumultuous", was no longer seen as "sustainable" and will likely lead to Kelly's ouster in the near future.
In April, Kelly issued a public statement denying reports from NBC News that he referred to Trump as an "idiot" during conversations with colleagues and mocked the President's lack of policy knowledge.
Kelly was photographed looking grim-faced in the lobby of Trump Tower as the President declared there were "good people" on both sides of the racist violence.
He also mishandled the situation involving former staff secretary Rob Porter, who was accused by two of his ex-wives of abuse. Kelly's shifting stance in the row caused his credibility inside the West Wing to plummet.
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