Vice Admiral Robert Harward has rejected President Donald Trump’s offer to replace Mike Flynn and become the administration’s new national security adviser.
Former Lieutenant General Flynn resigned from his post on Monday following heightened scrutiny over his previous contact with Russian officials.
Two sources close to Mr Harward's decision told CBS News that he declined the offer after the White House denied him his own team.
After the White House opposed his request, he withdrew his name from consideration.
President Trump reportedly told Mr Harward that Deputy National Security Adviser K T McFarland would keep her post despite Mr Flynn’s forced resignation.
Meanwhile, unnamed sources told Reuters that the decision was made over financial and family concerns, as Mr Harward is the current senior executive at Lockheed Martin.
Earlier in the day, the President addressed why he asked Mr Flynn to resign, explaining that he hadn’t been truthful about his conversations with Russian Ambassador Sergey Kislyak.
"The thing is, he didn't tell our Vice President properly, and then he said he didn't remember,” he told reporters. “So either way, it wasn't very satisfactory to me.”