Donald Trump cites 'dynamite' Ivanka Trump as possible replacement for outgoing UN ambassador Nikki Haley

Donald Trump has indicated his daughter Ivanka would make a good replacement for outgoing US ambassador to the UN Nikki Haley.

The president said that people who knew the 36-year-old would describe her as "dynamite" for the role.

It comes after Ms Haley, 46, announced on Tuesday she would be leaving the post at the end of the year.

In a joint appearance at the Oval Office, Mr Trump described Ms Haley as a "very special" person - adding that she had hinted six months ago she was considering taking time off.

Ms Haley announced her departure on Tuesday. Credit: AP

Her departure is the latest shake-up in the Trump administration ahead of the November midterm elections.

During her tenure, Ms Haley supported the US decision to withdraw from the UN human rights council.

Mr Trump said that he and Ms Haley, who has been touted as a candidate for higher political office, had "solved a lot of problems".

Donald Trump believes his daughter would be 'dynamite' in the role. Credit: AP

Ms Haley told the press that her time at the UN had been "the honour of a lifetime", but that it was important for government officials to know when the right time was to leave.

She said that since the 2016 presidential election the UN had started to "respect" the US again.

Ms Haley added that nations around the world had also been convinced that Mr Trump "means business".

"The US is strong again... in a way that should make all Americans proud," she said.

Nikki Haley indicated that she had been looking for some 'time off'. Credit: AP

When asked whether Ivanka Trump could be Ms Haley's replacement, Mr Trump said he feared being accused of nepotism.

"I've heard a lot of names. I've heard Ivanka, I've heard 'how good would Ivanka be', he said.

"It's nothing to do with nepotism, but the people that know, know that Ivanka would be dynamite... but I would then be accused of nepotism."

Ms Haley indicated she did not where her next role would be, but ruled out running for the 2020 presidency.

Mr Trump said that he had a number of people "who would very much like" to run for the vacant ambassador role.