Before she was named by Trump to her United Nations post, Haley was governor of SC, the first woman to hold the post.
But she has been overshadowed in recent months by the appointments of Trump loyalist Mike Pompeo as secretary of state and hawk John Bolton as White House national security adviser.
White House spokeswoman Sarah Sanders said the two would meet in the Oval Office with news media present.
During her more than a year-and-a-half on the job, she has repeatedly spoken her mind, whether it's going further on human rights than many of her administration colleagues or denouncing racism at home.
Trump told Haley that "hopefully you'll be coming back at some point. maybe a different capacity, you can have your pick". After running for the SC legislature in 2004, Haley, who is married to U.S National Guard office, became only the second Indian-American government of a U.S state (after Bobby Jindal) in 2010.
Trump spoke to reporters at the White House before departing for an event in Iowa, hours after announcing that current U.N. Ambassador Nikki Haley would step down at the end of the year.
Now that she's leaving the high profile post, rumors are swirling over her successor. "And I do think it's good to rotate in other people who can put that same energy and power into it". "But I will tell you that there is no hate in this country". At the White House, both Haley and the president praised her as a potent force behind the scenes.
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Haley made sure to name-check Trump family members and White House aides Jared Kushner and Ivanka Trump, praising them for their work in the administration.
"Dina Powell has been a key, trusted advisor in this administration". She admitted as much in a September op-ed for The Washington Post, but explained that she tries to talk to Trump when she disagrees with him.
Her with-us-or-against-us approach grated on many diplomats, but she was widely considered to be an internationalist ally, our correspondent adds.
President Trump makes remarks as United Nations Amb. Unless she gets indicted first. The timing of her departure is still unclear, the president promised a "big announcement" with her at 10:30 a.m. While naming Ivanka seems like a very Trump-like move, there could be a roadblock in place. Haley's resignation was a closely guarded secret.
The reason behind her resignation was not immediately clear.
"I've heard lot of names; I've heard Ivanka".