It follows reports that President Trump was outraged by comments made by Mulvaney during the Ukraine corruption saga.
The allegations of abuse of power over the Ukraine incident led to impeachment proceedings against President Trump.
Mulvaney's departure has been on the cards for the last few weeks.
Mr Mulvaney is to become US special envoy to Northern Ireland, while North Carolina lawmaker Mark Meadows has been appointed to take over his former position.
UN's Guterres urges 'give peace a chance' in Israel-Iran conflict
UN Secretary-General Antonio Guterres warned on Friday that expansion of the Israel-Iran conflict could "ignite a fire no one can control" and called on both sides and potential parties to the conflict to give peace a chance.
Israel-Iran conflict deepens, European diplomacy steps in
As the air war between Israel and Iran enters its second week, the foreign ministers of Britain, France and Germany are making renewed efforts to draw Iran back to negotiations, while US involvement remains undecided.
Death toll rises in Gaza as aid-seeking crowds come under fire
Dozens of Palestinians have been killed by Israeli fire in the past two days while trying to access food aid in Gaza, amid a worsening hunger crisis, according to local medics.
Kremlin declines to predict when Putin and Trump may meet face-to-face
The Kremlin said on Friday it could not predict whether Russian President Vladimir Putin would meet U.S. President Donald Trump this year given how turbulent the world had become.
One killed, 14 injured in overnight Russian attack on Ukraine's Odesa
One person was killed and at least 14 were injured when Russian drones attacked the Ukrainian Black Sea city of Odesa overnight, damaging high-rise buildings and railway infrastructure, local authorities and prosecutors said on Friday.
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