In Istanbul, Turkish prosecutors investigating Khashoggi's disappearance questioned Turkish employees of the Saudi consulate on Friday.
The disappearance of Khashoggi has provoked global criticism of Saudi Arabia's de-facto ruler, Crown Prince Mohammed bin Salman, and convulsed the kingdom as it struggles to respond to increasing worldwide pressure to explain the journalist's fate.
"I've seen reporting to that effect".
According to a report by the country's state TV, the country's deputy intelligence chief Ahmad al-Assiri and Saud al-Qahtani, senior aide to Crown Prince Mohammed Bin Salman, were dismissed over the affair.
He also said he thought third parties were involved in the death.
United Nations chief Antonio Guterres meanwhile demanded that those responsible for Khashoggi's death be held to account.
Trump also emphasized Riyadh's importance in countering regional rival Iran and the importance for American jobs of massive US arms sales to Saudi Arabia.
Khashoggi, a prominent journalist and royal court insider for decades in Saudi Arabia, had written columns critical of Crown Prince Mohammed bin Salman and the kingdom's direction while living in self-imposed exile in the U.S. He went to the Saudi consulate to obtain paperwork for his upcoming marriage.
Those aspersions - which many lawmakers have been wary of stating publicly because of the political risks of doing so - have begun to flare into public view as conservative media outlets have amplified the claims, which are aimed in part at protecting Trump as he works to preserve the U.S. -Saudi relationship and avoid confronting the Saudis on human rights.
Asked whether Saudi sanctions were one of the measures he was considering, Trump said, "Could be, could be".
At least one of the suspects traveled to Istanbul for the objective of meeting with Khashoggi, according to a statement from the Saudi Press Agency.
"We are saddened to hear confirmation of Mr Khashoggi's death, and we offer our deepest condolences to his family, fiancee and friends".
USA officials have told CNN that the operation could not have been carried out without the knowledge of Prince bin Salman, Saudi Arabia's de facto ruler. Republican Sen. Lindsey Graham said on Twitter, "To say that I am skeptical of the new Saudi narrative about Mr. Khashoggi is an understatement". He's also consolidated control over Saudi Arabia's security and intelligence agencies.
Saudi Arabia's admission comes after Turkish authorities widened their probe on Friday, searching a forest in Istanbul.
Sawers also maintained that the prince likely would not have moved against Khashoggi, a USA resident who disappeared October 2, unless he was convinced he had nothing to fear from the U.S.
Saudi Arabia enjoys far greater respect in the Oval Office than in the Capitol.
Turkish government sources have alleged Mr Khashoggi, a critic of the prince and the Saudi government, was tortured and murdered and by a hit squad flown in from Riyadh.
A person close to the White House said on Thursday Saudi officials are considering a plan to shield Mohammed from scrutiny and culpability by blaming Khashoggi's apparent death on an operation ordered by on Maj.