Daley resigns as Obama's chief of staff

White House chief of staff William Daley is to step down and will be replaced by President Barack Obama's budget chief Jacob Lew, a White House official said Monday.

Obama will announce the staff shake-up, which follows frequent reports that Daley had failed to gel with the president's inner circle since he was appointed a year ago, in a public statement later Monday.

Daley was brought into the White House a year ago to replace former chief of staff Rahm Emanuel as Obama sought to repair what were seen as strained ties with the business community.

But there were soon reports that Daley was marginalized in the president's political team, and it emerged that he planned to quit following President Barack Obama's reelection race.

The report of his immediate resignation was first carried by Tribune newspapers.