American Secretary of Defence Chuck Hagel has submitted his resignation as President Barack Obama seeks a new approach to combatting the threat of the Islamic State.

According to The New York Times, Mr Hagel’s departure comes after a series of meetings with President Obama over the last two weeks.

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Sources say the president felt Mr Hagel, who was often viewed as a passive defence secretary, was not the right man to address the rising terrorism threat.

Mr Hagel was appointed Secretary of Defence in February 2013 and was responsible for managing the United States’ withdrawal from Afghanistan.

In a farewell speech for Mr Hagel, President Obama paid tribute to the ex-soldier’s service during “a significant period of transition”.

“Chuck Hagel has been no ordinary secretary of defence,” President Obama said.

“He understands our men and women like few others because he’s stood where they stood. He sees himself in them and they see themselves in him.”

President Obama said Mr Hagel will stay on until a successor is confirmed by the Senate.

“I’d like to thank you … for the honour I’ve had to serve with each of you and the privilege it’s been in every way,” Mr Hagel said.