US PRESIDENT Barack Obama’s national security advisor James Jones is retiring and will be replaced by hard-charging deputy Tom Donilon, in a new shake-up of key White House staff portfolios.

US President Barack Obama announced today that his National Security Adviser, General James Jones, is stepping down after helping to shape foreign policy for nearly two years.

US president-elect Barack Obama plans to name seasoned advisers and political foes alike as his picks for top administration jobs today, including one-time political nemesis Hillary Clinton as secretary of state.