President Donald Trump's choice for national security adviser, retired Vice-Admiral Robert Harward, has turned down the offer, a senior White House official said.
Admiral Harward was offered the job after Michael Flynn was fired by Mr Trump earlier this week for misleading Vice-President Mike Pence over his conversations with Russia's ambassador to the United States.
The White House official said Admiral Harward cited family and financial reasons for opting not to take the job.
Admiral Harward is a senior executive at Lockheed Martin.
Two sources familiar with the decision said Admiral Harward turned down the job in part because he wanted to bring in his own team.
That put him at odds with Mr Trump, who had told Mr Flynn's deputy, KT McFarland, that she could stay.
Mr Trump appeared to refer to Admiral Harward earlier in the day at a presidential news conference, saying: "I have somebody that I think will be outstanding for the position."
The President also made clear why he asked Mr Flynn to resign, saying it was because the retired Lieutenant-General had not been completely truthful with Mr Pence about his conversations with the Russian ambassador to the United States, Sergei Kislyak.
"The thing is, he didn't tell our Vice-President properly, and then he said he didn't remember," Mr Trump said.
"So either way, it wasn't very satisfactory to me."
More to come.