Gibbs, one of Obama`s closest advisors, possesses sharp political instincts and a sometimes tart briefing style. He plays a central role in the White House and is not limited to the traditional press secretary portfolio.
He told AFP he would work on Obama`s 2012 reelection bid, continue to advise his boss from outside the White House and take to the speaking circuit in support of the president and his policies.
The departure of Gibbs, who was due to conduct his first briefing of 2011 later on Wednesday, will come as Obama contemplates a reshuffle to freshen his administration and as his reelection campaign machinery begins to stir.
The brutal hours and high pressures of working in the White House exact a heavy toll on staffers, and it is not unusual for press secretaries and other senior advisors to have a limited shelf life.
Obama is also seeking to refresh his brain trust following the Democratic wipeout in mid-term elections last year and as Republicans challenge the administration with their takeover of the House of Representatives.
The president has been considering naming William Daley, a former Clinton-era commerce secretary who has ties to the business community as his White House chief of staff, following the departure of Rahm Emanuel last year.
His top 2008 campaign strategist David Plouffe meanwhile is due to start work at the White House within days, while Obama`s long-time political guru David Axelrod will head to Chicago to fire up the campaign.
Obama is expected to name a new head of his National Economic Council as soon as this week, to replace Lawrence Summers, who has left the administration after two years seeking to reinvigorate the crisis-hit US economy.
A flurry of reports suggested that Gene Sperling, a Clinton-era economic official who is already working in the administration, may replace Summers.
So far, no replacement has been named for Gibbs. Most mentioned possible replacements include his deputy Bill Burton and Vice President Joe Biden`s spokesman Jay Carney.
Gibbs has been at Obama`s side since the former Illinois state lawmaker ran for the Senate in 2004, at the start of a lightning rise to power.
"Stepping back will take some adjusting," Gibbs told the New York Times on Wednesday.
"But at the same time, I have a feeling that I will keep myself quite busy, not just with speaking, but continuing to help the president."
From the podium in the White House press room, Gibbs appears to relish sparring with reporters and skewering Obama`s Republican foes, but also has a seat at the table in the administration`s sensitive inner deliberations.
A former college goalkeeper, Gibbs is a keen sports fan and sprinkles his briefings with sporting metaphors, and once had to don a Canadian ice hockey jersey on camera after losing an Olympic bet with his counterpart in Ottawa.
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Editor: Bambang
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