Defense Secretary Robert Gates announced he had accepted Fallon's resignation just after the admiral issued a statement saying he had requested permission to retire because of a magazine article that portrayed him as opposed to Bush's policies on Iran.

Bush on Tuesday praised the outgoing admiral Tuesday, despite the apparent rift.

"Admiral William Fallon has served our Nation with great distinction for forty years. He is an outstanding sailor -- and he made history as the first naval officer to serve as commander of Central Command," the US leader said in a statement.

"Admiral Fallon's job has been to help ensure that America's military forces are ready to meet the threats of an often troubled region of the world, and he deserves considerable credit for progress that has been made there, especially in Iraq and Afghanistan," Bush said.

Gates said at a press conference Tuesday that was "a misperception" and there were no significant differences between Fallon's views on Iran, which has defied global calls to rein in its suspect nuclear program, and those of the administration.

Asked about Esquire magazine's contention that Fallon's removal would signal the United States was preparing to go to war with Iran, Gates said: "Well, that's just ridiculous."

In an admiring profile of the admiral, Esquire writer Thomas P.M. Barnett portrayed Fallon as "The Man Between War and Peace," crediting him with calming tensions with Iran last year while bucking a White House move toward war.

"Well-placed observers now say that it will come as no surprise if Fallon is relieved of his command before his time is up next spring, maybe as early as this summer, in favor of a commander the White House considers to be more pliable," said the article.

"If that were to happen, it may well mean that the president and vice-president intend to take military action against Iran before the end of this year and don't want a commander standing in their way."

In his statement, Fallon said: "Recent press reports suggesting a disconnect between my views and the President's policy objectives have become distraction at a critical time and hamper efforts in the Centcom region."

"And although I don't believe there have ever been any differences about the objectives of our policy in the Central Command Area of Responsibility, the simple perception that there is makes it difficult for me to effectively serve America's interests there," he said.

Moments later, Gates told a hastily convened news conference at the Pentagon: "I have approved Admiral Fallon's request to retire with reluctance and regret."

He said Fallon made the decision to step down "entirely on his own."

"I believe it was the right thing to do even though I do not believe there are significant differences between his views and the administration's views," he said.

Army Lieutenant General Martin Dempsey, Fallon's number two at the US Central Command, was named to replace the admiral when he leaves at the end of the month.

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