Update 11.44pm: White House communications director Anthony Scaramucci has been fired after less than 10 days in the post.
President Trump's spokeswoman Sarah Huckabee Sanders said he wanted to give a "clean slate" for new chief of staff General John Kelly.
"The president certainly felt that Anthony's comments were inappropriate for a person in that position and he didn't want to burden General Kelly also with that line of succession," said Ms Huckabee Sanders.
The former Wall Street financier had drawn criticism after calling a reporter to give a profanity-laced tirade against his colleagues.
The decision was made by Mr Trump's new chief of staff, John Kelly, who was sworn in on Monday.
Donald Trump has tweeted for the first time since the announcement was made saying: "A great day at the White House!"
A great day at the White House!— Donald J. Trump (@realDonaldTrump) July 31, 2017
Joe Borelli, who was co-chairman of Mr Trump's New York campaign during the election, said that the move shows how much trust Trump has in General Kelly.
"The New York Times has now gotten some sourcing to say that it really was 100% Kelly's decision to come in as chief of staff with his own communications team which he's hoping is more disciplined and stays on message," said Borelli.
Earlier: Scaramucci has been removed from the role as White House communications director.
The New York Times reported that Anthony Scaramucci was removed by John Kelly, chief of staff at the White House.
A statement from the Press Secretary said that Scaramucci wished to give Kelly a "clean slate" so that he can build his own team.
The statement said: "Anthony Scaramucci will be leaving his role as White House Communications Director.
"Mr Scaramucci felt it was best to give Chief of Staff John Kelly a clean slate and the ability to build his own team,
"We wish him all the best."
Sarah Huckabee wishes the Mooch “all the best.” pic.twitter.com/JGbLQuyG45— Jim Roberts (@nycjim) July 31, 2017
This development comes just hours after retired General John Kelly was sworn into office as Donald Trump's new chief of staff.
Sky News reporter James Matthews - who's in Washington - said that seems to have been key.
"He [John Kelly] clearly couldn't see any other way of fulfilling his brief of fulfilling order, discipline and authority without getting rid of Scaramucci," said Mr Matthews.
Donald Trump's now former communications director sparked controversy with his talk of backstabbing in Washington and use of colourful language when he was appointed less than two weeks ago.
Anthony Scaramucci was about a week into his new job when he made headlines around the world with his "straight talking".
Mr Scaramucci was brought in as part of a White House shake-up which led to the resignation of press secretary Sean Spicer.
In a Twitter message just before 5:30 on Monday morning, just hours before the announcement about Mr. Scaramucci, Mr. Trump insisted that there has been “No WH chaos!”
Highest Stock Market EVER, best economic numbers in years, unemployment lowest in 17 years, wages raising, border secure, S.C.: No WH chaos!— Donald J. Trump (@realDonaldTrump) July 31, 2017
The Associated Press reported that people familiar with staff changes said Mr Spicer considered Mr Scaramucci lacked the qualifications for the top communications job and quit in protest.
Mr Scaramucci, a native of Long Island, New York, had no government experience and no experience crafting communication strategy around policy, according to AP.
Earlier: The New York Times is reporting that Anthony Scaramucci has been removed as communications director for the White House.
This comes only 10 days after Scaramucci was appointed to the position.
There are conflicting reports as to whether he resigned or was removed by President Trump.
It was a controversial appointment leading to the resignation of former Press Secretary Sean Spicer.
The New York Times reports that Scaramucci had boasted about reporting directly to Trump and not John Kelly, the White House Chief of Staff.
It was reportedly Kelly's decision to remove Scaramucci from the Trump administration.