PM carried out a number of hirings and firings for top government positions.
A source close to the former minister said he stood down after Number 10 ordered him to sack his team of aides.
Mr Javid said that “no self-respecting minister” could accept the condition.
“He has turned down the job of Chancellor of the Exchequer,” the source said.
“The Prime Minister said he had to fire all his special advisers and replace them with Number 10 special advisers to make it one team.
“The Chancellor said no self-respecting minister would accept those terms.”
Javid was expected to hold onto his position, and was due to present the government budget in 28 days’ time.
Speaking on November, the PM said he planned to keep Javid on as chancellor going forward, saying he was doing a “fantastic job”.
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