Tom Bossert, assistant to the president for homeland security and counterterrorism, "also had his role downgraded as part of the changes", according to the AP.
Bannon, a former Breitbart News executive, had no objections to his removal, a source familiar with the decision told ABC News.
"Steve Bannon, who made a career out of selling hateful and divisive propaganda aimed at women, Hispanics, African Americans, Jews, and other minorities, was outrageously placed on the National Security Council by President Trump".
National Security Adviser H.R. McMaster has now reversed some of those changes, a move that was approved by President Trump, according to a senior White House official.
Bannon's role as a National Security Advisor was controversial from the get-go.
The shakeup Wednesday also promoted the chairman of the Joint Chiefs, Marine Corps Gen. Joseph Dunford, and Director of National Intelligence Dan Coats to "regular attendees".
So Steve Bannon is out at the National Security Council.
The decision to elevate Bannon on the NSC in January was criticized by some members of Congress and Washington's foreign policy establishment.
Bannon was asked specifically to respond to a report by MSNBC host Joe Scarborough that he has told his colleagues, "If my talents aren't needed here, I can take them somewhere else".
The ousting of one of rump's most contested advisers was applauded by politicians on both sides of the aisle who argued that Bannon's appointment on a national security policy-making committee might politicize foreign policy.
The argument seems to be that Susan Rice turned the NSC into something it's not supposed to be (which seems right) and Bannon "de-operationalized" the NSC. In addition to gaining greater control over the NSC, McMaster will have the Homeland Security Council under his authority.
Braves beat Padres 5-2 on opening night at new stadium
Ryan Schimpf walked and Erick Aybar was hit by a pitch, setting up Chacin's run-scoring dribbler and Manuel Margot's RBI single. The Ciesielski family of Smyrna took advantage of one of their favorite restaurants' new location in the Battery, Antico Pizza.
North Korean Test Missile Explodes on Launch
It allowed the vice president to gaze at North Korean soldiers afar and stare directly across a border marked by razor wire. United States battleships were moved into the waters near the Korean peninsula as a precaution.