Meanwhile, the president is said to be considering a wide-ranging shake-up of his administration to prepare it for divided government following the mid-term elections.
According to reporting from CNN White House correspondent Kaitlan Collins, the president complained that the whole episode made him look like he was taking orders from his wife. "When she needs advice on any issue, she seeks it from her professional team within the White House".
Talk of Mr Kelly's exit has been bubbling for months but he remains in place.
But a string of dramas, including one where he had to deny calling the President "an idiot", reportedly tested the relationship between the President and his most senior aide.
Trump doesn't even want to be in the spotlight, unlike Obama, who has a memoir coming out bashing President Donald Trump.
So what'll be the straw that breaks the camel's back this time?
Colbert described the statement as "a classy way to diss somebody", and then imagined the next statement: "Furthermore it is the position of this office that the first lady will cut a bitch". A weekend trip to Paris for World War I commemorations was marred by a row with President Emmanuel Macron - which saw Trump mockingly refer to Germany's invasions of France during the two world wars, while also berating America's European allies in North Atlantic Treaty Organisation over their defence spending.
The President chose the issue as his closing pitch at the midterms, highlighting how important he feels it is to his continued electoral success.
The dispute made it hard for Ricardel to land in a top post in the Trump administration, though she was ultimately tapped for the position of undersecretary of commerce for export administration. Among those on the possible chopping block: Homeland Security Secretary Kirstjen Nielsen, a close ally of Trump's chief of staff John Kelly.
The publication reports that Melania's big power grab comes at a time when "infighting among White House staff nearing Civil War-like levels", thus reducing Kelly to being a mere "bystander" instead of a manager.
Commerce Secretary Wilbur Ross and Interior Secretary Ryan Zinke are also being discussed for replacement according to AP.
"He's pissed at damn near everyone", one White House official told CNN.
"It does provide the President with an opportunity to reset", he said.The Washington Post, citing three current and two former White House officials, reported that Ricardel had berated people in meetings and spread rumors about Mattis.