Melania Trump fires friend and adviser whose firm got $26 million for Trump’s inauguration

Melania Trump has cut ties with her longtime friend and adviser, Stephanie Winston Wolkoff, after controversy arose over the US $26 million her firm received to help plan President Donald Trump's inauguration.

Winston Wolkoff, 47, has been friends with Mrs Trump for years, and was her first hire in her new role. She had been working as an unpaid senior adviser to the office of the First Lady since Donald Trump's election.

President Trump's spokeswoman, Stephanie Grisham, said the office had "severed the gratuitous services contract with Ms. Wolkoff," the New York Times reports.

She added: "We thank her for her hard work and wish her all the best."

According to the publication, Winston Wolkoff had been employed as a "special government employee" to work on specific projects. However, her contract was terminated last week.

The sacking comes after another New York Times report revealed Winston Wolkoff's firm, WIS Media Partners -- which was created six weeks before the inauguration -- was paid a whopping US $26 million (AU $33 million) by the presidential inaugural committee.

Winston Wolkoff has long been involved in planning Manhattan society galas. She is also an associate of Vogue editor Anna Wintour. The First Lady attended her 40th birthday party in 2010.

The outlet reports two people close to the situation said the Trumps were displeased with the huge bill. Though Grisham said Ms. Trump "had no involvement" with the inaugural committee "and had no knowledge of how funds were spent."

But Winston Wolkoff defended the decision, saying she will continue to offer "informal" advice to the First Lady. 

"I was informed by the White House counsel’s office that all gratuitous volunteer contracts were ended,” she said. "I expect to remain a trusted source for advice and support on an informal basis.

"I am proud of the work that we did to support the inauguration."