National security adviser John Bolton tapped Ricardel in April to serve as his deputy, hailing her "track record of successfully managing teams and diverse organizations, as well as addressing complex issues". Sanders did not elaborate on what Ricardel's new job would be.
In locking horns with the First Lady, she seems to have come off second best to the person the president trusts the most - his wife.
Despite the comments, Ricardel reported to work Wednesday.
A dust-up between Ricardel and several East Wing senior staff members before and during the first lady's trip to Africa last month ended up eliciting Melania Trump's attention, and the conflict led to an internal dispute that festered for weeks.
The news comes amidst a flurry of news reports that Trump's chief of staff, retired Marine general John Kelly, may also be on the outs, in part over the expected firing of Homeland Security head Kirstjen Nielsen.
Critics say the chaos, caused mostly by rumors and gossip in the White House, threatens the U-S national security.
"It is not news or surprising to me that critics and the media have chosen to ridicule me for speaking out on this issue, and that's OK", Trump said Thursday at a Family Online Safety Institute conference.
Policy experts from the NSC and State Department were advised to fly separately and to meet the first lady's party on the ground, a practice the State Department had often used, but Ms Ricardel objected strenuously, those people said.
In those few months on the job, Ricardel generated a long list of enemies and developed a reputation for shouting at subordinates, plotting against White House officials she disliked and leaking stories about her administration opponents to the press.
During the last administration, aides to Michelle Obama fought with press secretary Robert Gibbs over the handling of a disputed media report about Mrs. Obama supposedly telling French counterpart Carla Bruni that living in the White House was "hell".
"Mrs. Trump is a strong and independent woman who has been navigating her role as First Lady in her own way", Grisham wrote via email.
During her trip there, Mrs Trump told ABC in a rare interview that there were people in the White House who she does not trust. They said Ricardel was the reason for the delay.
Melania allegedly complained to the President, 72, saying she was unhappy with how she was treated by Ms Ricardel, according to two sources speaking to Reuters.