The US Defense Secretary on Sunday asked the navy chief to resign in a dispute over an elite SEAL commando whose demotion for misconduct was reversed by President Donald Trump.
Navy SEAL Edward Gallagher had been accused of war crimes in a high-profile case but was found guilty of a lesser offense.
On 15 November, Mr Trump reversed the demotion handed down to him due to his conviction.
US Secretary for Defense Mark Esper. Source: AAP
The defense department accused Navy Secretary Richard Spencer of privately proposing to the White House that if they did not interfere with misconduct proceedings against Gallagher, then Gallagher would retire without being expelled from the elite SEAL force.
Mr Spencer allegedly did not share his proposal with Defense Secretary Mark Esper.
Mr Esper asked for Spencer's resignation "after losing trust and confidence in him regarding his lack of candor over conversations with the White House," the Department of Defense said in a statement.
Mr Esper said he was "deeply troubled by this conduct."
The US Navy has launched a procedure under which a peer review board could strip Mr Gallagher and three other members of his unit of their Trident pins - effectively booting them from the SEALS.
Navy Special Operations Chief Edward Gallagher and his wife Andrea Gallagher. Source: AAP
But the intervention of Mr Trump - commander-in-chief of the US military - has thrown that process into doubt.
Mr Trump declared on Twitter on Thursday that "The Navy will NOT be taking away Warfighter and Navy Seal Eddie Gallagher's Trident Pin."
