Wolff reported in his book that former Fox News chairman Roger Ailes approached Bannon in April about teaming up to launch a new conservative television network that would feature the just-fired Bill O'Reilly.
Bannon drew the ire of the White House last week when The Guardian revealed that author Michael Wolff quoted him in his book "Fire and Fury" as saying a Trump Tower meeting involving Donald Trump Jr, Jared Kushner, and a Russian lawyer during the 2016 campaign was "unpatriotic" and perhaps "treasonous".
"When he was sacked, he not only lost his job, he lost his mind", said Mr Trump in a statement.
Bannon later said he regretted his remarks, but that wasn't enough to win back Mr. Trump.
Nikki Haley, the USA ambassador to the United Nations, said she visits the White House once a week, and "no one questions the stability of the president".
"He's gone", said a Breitbart editor Tuesday afternoon.
Scaramucci was removed from the White House last August after he struck out on his own in a blistering, expletive-filled interview with the New Yorker in which he said he wanted "to fucking kill all the leakers" and accused Bannon of trying to build his own "brand off the fucking strength of the President". When he left the White House a year later, Bannon returned to Breitbart, which he had called a "platform for the alt-right".
Bannon had described a meeting in NY with a Russian lawyer during the 2016 presidential election campaign as "treasonous". "My family and I have not communicated with Steve Bannon in many months and have provided no financial support to his political agenda, nor do we support his recent actions and statements".
"But his vessel turned out be, as Bannon has described him, but as everyone - singularly, everyone else in the White House has also described him - his vessel turned out to be a child or to be like a child, a man so desperate for immediate gratification that really nothing could get done". "When he was sacked, he not only lost his job, he lost his mind".
As late as this weekend, Bannon continued to tell people that he planned to stay in charge at Breitbart and that he would keep his radio show.
Mr Wolff, for his part, said on MSNBC that Mr Bannon's comments were certainly directed at the President's son and not Mr Manafort.
"Breitbart News has made a decision to end its relationship with Stephen K. Bannon, therefore he will no longer host on SiriusXM since our programming agreement is with Breitbart News", SiriusXM said in a brief statement. It has sparked outrage in Trump's camp, and the president's allies attacked the book in a round of television appearances Sunday.