A Downing Street spokesperson said Theresa May had “lost confidence in his ability to serve” in the cabinet.
They continued: “The prime minister’s decision has been informed by his conduct surrounding an investigation into the circumstances of the unauthorised disclosure of information from a meeting of the National Security Council.
“The prime minister thanks all members of the National Security Council for their full cooperation and candour during the investigation and considers the matter closed.”
The National Security Council (NSC) is made up of senior cabinet ministers and its weekly meetings are chaired by the prime minister, with other ministers, officials and senior figures from the armed forces and intelligence agencies invited when needed.
It is a forum where secret intelligence can be shared by GCHQ, MI6 and MI5 with ministers, all of whom have signed the Official Secrets Act.
There has been no formal confirmation of Huawei’s role in the 5G network and No 10 said a final decision would be made at the end of spring.
Huawei has denied there is any risk of spying or sabotage, or that it is controlled by the Chinese government.