President Donald Trump is "evaluating the situation" on his national security adviser's contact with a Russian envoy, the White House says.
Michael Flynn came under scrutiny amid reports he spoke to the Russian ambassador to the US about sanctions before Donald Trump's inauguration.
Vice-President Mike Pence publicly denied the allegations on behalf of the retired Army lieutenant general.
Mr Flynn has since told the White House that sanctions may have been discussed.
It is illegal for private citizens to conduct US diplomacy, and the calls happened late last year, before Mr Flynn was appointed to the administration.
White House spokesman Sean Spicer said on Monday afternoon: "The president is evaluating the situation.
"He is speaking to the vice-president relative to the conversation the VP had with General Flynn and also speaking to various other people about what he considers the single most important subject there is - our national security. "
Mr Spicer's statement came soon after White House counsellor Kellyanne Conway said Mr Flynn had "the full confidence of the president".
"It's a big week for General Flynn. He's the point of contact for many of these foreign visits," she told MSNBC.
Mr Flynn has apologised to the vice-president over the controversy surrounding his conversations with Russian ambassador Sergei Kislyak.
Kremlin spokesman Dmitry Peskov told reporters on Monday that Mr Flynn and Mr Kislyak did not discuss lifting sanctions.
According to Politico, Mr Trump's adviser and son-in-law, Jared Kushner, is scouting for possible candidates to replace Mr Flynn.
Meanwhile, the Washington Post reports that the Trump White House was warned last month by the US Justice Department that Mr Flynn could be vulnerable to Russian blackmail.
How the controversy unfolded
Mr Flynn is known to have spoken with Mr Kislyak several times by phone in December.
With the support of Vice-President Pence, Mr Flynn denied that he and Mr Kislyak had discussed US sanctions imposed over Russia's actions in Ukraine and alleged hacking of the US Democratic Party.
But nine current and former officials later told the Washington Post the issue had been discussed.
A spokesman for Mr Flynn subsequently backtracked, telling reporters the adviser now said he "couldn't be certain" he had not discussed the sanctions, prompting speculation that he may have misled the vice-president.
Mr Pence and Mr Flynn reportedly spoke twice on Friday when he privately apologised to the vice-president, according to an administration official.
What is the president's view?
Mr Trump has yet to publicly comment on the controversy, but was with Mr Flynn over the weekend at his club in Florida, Mar-a-Lago.
Mr Flynn appeared in the front row at President Trump's news conference on Monday with Canadian Prime Minister Justin Trudeau.
Mr Trump was not asked about Mr Flynn by the two reporters he called on, and evaded follow-up questions about the controversy as he left the room.
Asked if the president was aware that Mr Flynn could discuss sanctions with the Russian ambassador, Mr Trump's spokesman, Sean Spicer, said: "No, absolutely not. No way."
What's the reaction on Capitol Hill?
Democratic House Minority Leader Nancy Pelosi on Monday called for Mr Trump to fire Mr Flynn, tweeting that he "cannot be trusted to serve America's best interests and national security instead of Russia's".
Several House Democrats have called on Oversight Committee Chairman Jason Chaffetz to launch an investigation into Mr Flynn's ties to Russia.
Republican Senator Susan Collins of Maine said it would also be "troubling'' if Flynn had been negotiating with a foreign government before taking office.
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