President Donald Trump's chief strategist Stephen K. Bannon flatly denied reports that he threatened to resign after being removed from the Principals Committee of the National Security Council.
A senior White House official confirmed the move, saying that Bannon was given the post as a check on former national security adviser Michael Flynn.
Bannon only attended one meeting of the Principals Committee and Flynn was sacked from his role in mid February after misleading Vice President Mike Pence about conversations he had with a Russian official.
In a presidential memo dated April 4, Bannon no longer appears on the list of regular attendees of NSC meetings.
His appointment as Trump administration chief strategist in November dismayed opponents, with America's Anti-Defamation League accusing Mr Bannon of supporting a movement of "white nationalists" and "unabashed anti-Semites".
In a statement Wednesday, Reed called Bannon's removal a "positive step". The council will be more streamlined and the decision making more deliberative, the official said, according to NBC.
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The president also downgraded the role on the security council of his homeland security adviser, Tom Bossert. Although he served as a junior officer in the Navy Reserve, he had little national security experience.
Bannon, the sources said, appealed directly to President Trump, who was "stunned" when Bannon threatened to quit.
Despite the move, Bannon retained his security clearance, NBC said.
The New York Times reports that the memo issued on Tuesday also named the energy secretary, Central Intelligence Agency director and the United Nations ambassador as members of the NSC's principals committee.
The reshuffling of Trump's security council will strengthen the roles of top-ranked intelligence and defense officials, including National Security Adviser H.R. McMaster, who will gain greater control over both the NSC and Homeland Security Council, Bloomberg reported. Politico said Bannon is concerned that Kushner is trying to undermine Trump's populist approach. This would mean reducing the role of the chairman of the Joint Chiefs and the national intelligence director.
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