Kelly, who on Monday celebrated his first anniversary as chief of staff, told West Wing staff Monday that he will be staying in his post at Trump's request through the remainder of the president's first term.
Kelly hit the one-year mark as Trump's chief of staff Monday.
"Congratulations to General John Kelly". Trump acts as though he doesn't really want a chief of staff, and Kelly "no longer works to keep his mercurial boss on task or on message".
"The president knows that it is necessary to have a chief of staff that allows him to do things that only he, as president, can do", said White House deputy press secretary Lindsay Walters.
Chafing at Kelly's efforts to impose order, Trump has increasingly followed his own counsel and added more like-minded aides to his staff.
For months, rumors swirled in Washington about Mr. Kelly falling out of favor with the president, suffering a deteriorating role in the White House and looking to the exit. While he has not backed away from his assertion that the position is "the hardest job" he'll ever have, Kelly has signaled a willingness to forge ahead in the postition even with diminished clout.
While serving as secretary of homeland security, Kelly got news of his promotion via tweet from Air Force One. The White House has struggle to recruit top talent across the administration to replace departing staffers.
The Wall Street Journal first reported news of Kelly's plans.
Trump and Kelly have privately argued at times and complained about one another to confidants. "He's a wonderful man".