Donald Trump
Donald TrumpReuters

US President Donald Trump said Tuesday that his daughter Ivanka would be "dynamite" as an ambassador to the United Nations, but conceded he would be accused of nepotism if he appointed her to replace outgoing Ambassador Nikki Haley, who announced her resignation earlier in the day.

"I think Ivanka would be incredible," Trump told reporters as he prepared to depart the White House for a campaign rally in Iowa, as quoted by The Hill.

"You’d be accused of nepotism even though I’m not sure there’s anybody more competent in the world," he added.

Trump also said he’s considering Dina Powell for the position. Powell previously served as the president’s deputy national security adviser and focused on Middle East policy, but left the administration at the beginning of this year and later joined Harvard University as a non-resident senior fellow.

Haley and Trump announced earlier Tuesday that she will exit the administration by the end of 2018. Trump said Haley informed him of her plans six months ago, and that she wanted to "take a break" from public service.

Haley has been an outspoken critic of the UN's corruption, bias, and inability to deal with human rights crisis around the world. She was also Israel's biggest supporter at the UN.

The ambassador said that her service at the UN "has been the honor of a lifetime."

Prime Minister Binyamin Netanyahu and other Israeli leaders from across the political spectrum thanked Haley for her support following her surprise resignation.

"I thank Ambassador Nikki Haley, who led an uncompromising struggle against the hypocrisy of the United Nations and the truth and justice of our country. Best of luck!" Netanyahu said.

President Reuven Rivlin said: "I would like to thank Nikki Haley, a true ambassador, from the bottom of our hearts and on behalf of all the citizens of Israel. Haley presented an uncompromising stance on US positions on the Middle East and Israel, and defended our clear right to protect the security of our citizens. Haley, in her direct statements, often led to the removal of the cynical mask from processes led by the United Nations and international organizations."

"I thank Mrs. Haley for her courage and for her tenure as a turning point in the US attitude toward the international organizations and for the discriminatory treatment that these organizations often take against the State of Israel," the president added.

"We will continue to see Nikki as a true friend and we will be happy to receive her at the President's Residence on her next visit to Israel," Rivlin concluded.

Haley's Israeli counterpart, Ambassador Danny Danon, earlier thanked her "for standing with the truth without fear. Thank you for representing the values common to Israel and the United States.”

“Thank you for your support for the State of Israel, which helped lead to a change in Israel's status in the UN. Thank you for your close friendship and common paths. Wherever you are, you will continue to be a true friend of the State of Israel," Danon said.