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.
Iran threatens painful response if US renews attacks
Iran said on Thursday it would respond with "long and painful strikes" on US positions if Washington renewed attacks and restated its claim to the Strait of Hormuz, complicating US plans for a coalition to reopen the waterway.
Ukrainian drones hit Russian port of Tuapse for the fourth time
A fresh Ukrainian drone strike on Russia’s Black Sea port of Tuapse, the fourth in the past week, sparked a fire at the sea terminal but caused no injuries, local officials said early on Friday.
Hundreds of protesters clashed with Australian emergency services workers in a remote town following the alleged murder of a five-year-old Indigenous girl, police said on Friday.
Palestinian teen shot dead in Israeli West Bank raid, Wafa reports
A Palestinian teen has been shot dead during an Israeli military raid in the occupied West Bank on Wednesday, the official Palestinian news agency Wafa reported.
Some 287 nominated for 2026 Nobel Peace Prize, Trump likely among them
Some 287 candidates will be considered for the 2026 Nobel Peace Prize, the secretary of the Norwegian Nobel Committee said on Thursday, with US President Donald Trump likely to be among the nominees.
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