Feely is a career diplomat and U.S. Marine Corps helicopter pilot veteran who acknowledged in his resignation letter that he believed he could no longer serve apolitically in the Trump administration.
The reports of the resignation comes just hours after the United States ambassador to Botswana was summoned as disparaging remarks Trump is alleged to have made about Africa and Haiti which sparked worldwide furor.
The US ambassador to Panama has resigned from his post, telling the State Department that he can no longer serve under President Trump, according to reports.
Goldstein told reporters that he was aware of Feeley's planned departure in advance, even before Trump's alleged use of the term. "That time has come", he added.
Trump said he'd prefer to receive immigrants from countries like Norway.
Panama hasn't played a major role in Trump's foreign policy agenda yet, but he did compliment the Panama Canal when he met the country's president a year ago.
Feeley's departure had been communicated to State Department officials on December 27 and was not a response to Trump's alleged use of the word "shithole" to describe Haiti and African countries at a meeting on Thursday, U.S. officials said.
"Everyone has a line that they will not cross", Mr Goldstein told reporters at the State Department.
Feeley's resignation marks the end of a 35-year career in public service as a marine and diplomat, according to a notice from the USA embassy in Panama.