The White House has not officially announced the party cancellation.
Trump's son-in-law and senior adviser Jared Kushner similarly told Fox News' "Hannity" exclusively on Monday that the president has been weighing his options carefully for a good personality fit.
"All of us here would recognize, he will be great in any role that the president chooses to put him in", she said.
White House officials argued Trump's decision was made strategically to avoid a special congressional election and keep Meadows in place to battle House Democrats.
"I know the president has a long list of tremendous candidates for his next chief of staff, and whomever it is will have my total support going forward", he said. The embarrassment comes at a pivotal time for Trump, as he prepares for re-election while facing an expected onslaught of investigations from Democrats who will take control of the House and amid the ongoing Russian Federation probe.
Trump has mused about Meadows as a possible version of that kind of chief of staff but never leaned toward selecting him, the person said. Declined to answer if he was interviewing for chief of staff.
An exact date for Kelly's departure appeared to be fluid this week.
The president, before he was even a candidate for the job, once criticized then-President Barack Obama for having multiple chiefs of staff in three years. "They have no choice; their radical base wants impeachment at any cost, as do some of their biggest donors".