Adam Boehler has withdrawn his nomination as the US special presidential envoy for hostage affairs on Friday.
The withdrawal of his nomination has been in the works for two weeks, one of the two senior Trump administration officials cited in Axios said, and added that he would have a "different presidential envoy position with a broader mandate" in a position that would not require Senate confirmation.
Another White House official said that Boehler was "elected to work in a non-confirmed capacity so he would not be required to divest from his health-care investment firm."
The official added in that report that Trump still has the "utmost confidence" in Boehler.
White House officials said that Boehler will still continue to work in the Trump administration "as a special government employee focused on hostage negotiations," reports said.
Speaking with Hamas directly
Boehler had overseen direct negotiations with the Hamas terrorist organization on behalf of the United States, and had come under fire from Israeli officials and by Republicans for being the first American official to hold direct talks with the Palestinian terror group. This course of action was reportedly approved by Trump himself.
US Secretary of State Marco Rubio clarified that "the talks bore no fruit" and that they were a one-time event.
Boehler was given permission from the Trump administration to engage directly with Hamas, US Secretary of State Marco Rubio said earlier this week, calling the talks a "one-off situation" that had not borne fruit.
Boehler has been credited with helping secure the release of American schoolteacher Marc Fogel, who was freed by Russia in February after three and a half years in prison.
Saturday's official announcement of Boehler's nomination withdrawal came only two days after initial reports said he had been removed from involvement in the negotiations for the release of hostages held by Hamas in Gaza.
Boehler said that the talks were focused on releasing Edan Alexander, who is believed to be the sole living American hostage in Gaza, the Washington Post reported.
Hamas announced that it would plan to release Alexander, but Israel had accused the terror organization of deviating from the American proposal for a ceasefire extension.
Amichai Stein contributed to this report.