Sarah Sanders WHPB 030718
CNN
Sarah Sanders WHPB 030718
Now playing
02:00
WH: Trump not aware of Stormy Daniels payment
Trump Stormy Daniels not changed story new_00000000.jpg
Trump Stormy Daniels not changed story new_00000000.jpg
Now playing
00:54
Trump gets testy with reporter over porn star
ABC
Now playing
02:51
Stormy Daniels releases sketch
Photo Illustration: Getty/Shutterstock/CNNMoney
Now playing
03:39
Stormy, Cohen and Trump: What you should know
rudy giuliani tel aviv
Globes
rudy giuliani tel aviv
Now playing
01:00
Giuliani: Melania believes Trump over Daniels
CBS/"60 Minutes"
Now playing
03:06
Stormy Daniels: 'I have no reason to lie'
NBC/Broadway Video
Now playing
01:11
Stormy Daniels taunts Trump on 'SNL'
playboy karen mcdougal trump amorio maestra preescolar playmate acuerdo ami digital pkg_00000511.jpg
Karen McDougal / Getty Images
playboy karen mcdougal trump amorio maestra preescolar playmate acuerdo ami digital pkg_00000511.jpg
Now playing
01:20
Karen McDougal: Preschool teacher turned Playboy model
trump time magazine cover
CNN
trump time magazine cover
Now playing
01:52
TIME cover shows Trump in 'Stormy' conditions
photo illustration/cbs/getty images
Now playing
05:07
NYT: FBI searched for porn star, playmate payment records
CNN
Now playing
02:51
The cases that bind Cohen, Davidson
Now playing
01:45
McDougal appears in photo with Trump family
Pool
Now playing
00:49
Trump: No knowledge of Stormy Daniels payment
MIAMI BEACH, FL - FEBRUARY 06: Karen McDougal attends Playboy's Super Saturday Night Party at Sagamore Hotel on February 6, 2010 in Miami Beach, Florida. (Photo by Dimitrios Kambouris/Getty Images for Playboy)
Getty Images
MIAMI BEACH, FL - FEBRUARY 06: Karen McDougal attends Playboy's Super Saturday Night Party at Sagamore Hotel on February 6, 2010 in Miami Beach, Florida. (Photo by Dimitrios Kambouris/Getty Images for Playboy)
Now playing
02:53
Karen McDougal and the 'catch and kill' system
Stormy Daniels taking a polygraph exam in 2011.
Courtesy Michael Avenatti
Stormy Daniels taking a polygraph exam in 2011.
Now playing
02:58
Polygraph: Stormy Daniels truthful about Trump
LAS VEGAS, NV - FEBRUARY 04:  Adult film actress/director Stormy Daniels hosts a Super Bowl party at Sapphire Las Vegas Gentlemen's Club on February 4, 2018 in Las Vegas, Nevada.  (Photo by Ethan Miller/Getty Images)
Ethan Miller/Getty Images
LAS VEGAS, NV - FEBRUARY 04: Adult film actress/director Stormy Daniels hosts a Super Bowl party at Sapphire Las Vegas Gentlemen's Club on February 4, 2018 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)
Now playing
01:58
The president and the porn star
(CNN) —  

President Donald Trump is upset with White House press secretary Sarah Sanders over her responses Wednesday regarding his alleged affair with porn star Stormy Daniels, a source close to the White House tells CNN.

Daniels, whose legal name is Stephanie Clifford, filed suit against Trump this week alleging he hadn’t signed a nondisclosure agreement that would have prevented her from discussing their alleged sexual affair.

On Wednesday, Sanders told reporters that the arbitration was won “in the President’s favor.” The statement is an admission that the nondisclosure agreement exists, and that it directly involves the President. It is the first time the White House has admitted the President was involved in any way with Daniels.

“POTUS is very unhappy,” the source said. “Sarah gave the Stormy Daniels storyline steroids yesterday.”

Two other White House officials came to Sanders’ to defense, insisting Trump thought she did a great job.

This week’s developments are the latest installment in a continuing controversy for the White House involving Daniels, and a distraction from Trump’s attempted rollout of tariffs on steel and aluminum imports.

Just weeks before the 2016 election, Trump’s legal counsel Michael Cohen paid Daniels $130,000 of his own money, which he admitted to in February. Cohen has said the President “vehemently denies” any sexual encounter between the two.

While Trump has rarely accepted personal responsibility for any of his self-inflicted political wounds, the two White House officials say any fault surrounding this Stormy Daniels legal drama lies well beyond the West Wing.

“It’s Michael Cohen’s mess,” one official said, frustrated that this controversy has landed squarely in the lap of those who work in the White House and had nothing to do with creating it.

The issue continues to cause tension in the West Wing and the person at the center of it – the President – is not accepting any of the blame.

CNN’s Jeff Zeleny and Kevin Liptak contributed to this report.