"I appreciate his service very much", he added.
"Give Nick a call", Trump has instructed people, referring to Vice President Mike Pence's chief of staff, Nick Ayers, according to one person familiar with the discussions. "We will be announcing who will take John's place".
Grace Millane: Disappearance of British backpacker being investigated as murder
Millane called his daughter a "fun-loving, family-oriented daughter" and urged anyone with information to contact police. He also said investigators were looking into her credit card activity to see the last time she made a transaction.
Speaking to reporters on Saturday as he was leaving the White House to attend the Army-Navy football game in Philadelphia, Trump said an announcement on Kelly's replacement would come in the next few days. The retired Marine Corps general has spent 16months in the position. Striking that balance in the turbulent times of Trump has bedeviled both Kelly and his predecessor, Reince Priebus.
Kelly was reportedly questioned about the obstruction of justice arm of the special counsel's investigation, which CNN reported Thursday was first launched by former Deputy Director of the FBI Andrew McCabe shortly after his boss, James Comey, was fired.
This story will be updated.
But after the midterm elections in November, Trump said "let's see what happens", about Kelly's future at the White House, during an interview on "Fox News Sunday". In recent months, the chief of staff's power has ebbed, with administration policies and decisions being guided more by the president's gut instincts than by Kelly's processes. On Friday, he announced that he had picked William Barr for attorney general and Heather Nauert for United Nations ambassador.