President Barack Obama announced Friday that he would install national-security official Denis McDonough as his new chief of staff, completing a shakeup of the West Wing staff that drew heavily on a close-knit circle of loyalists.

Mr. McDonough will become the president’s fourth chief of staff, succeeding Jack Lew, who is Mr. Obama’s choice to be the next Treasury secretary. The selection was the latest to show Mr. Obama’s preference for aides with whom he has a strong personal bond.

Mr. McDonough, 43 years old, has been the president’s deputy national security adviser, playing a role in the decisions to wind down the wars in Iraq and Afghanistan, among other matters. He first worked with Mr. Obama after the 2004 elections, helping the newly elected senator set up an office on Capitol Hill. Later, he assisted Mr. Obama’s 2008 presidential bid. Aides recall Mr. McDonough, a churchgoing Catholic, clutching rosary beads in the Chicago campaign headquarters as he worked out the logistics of the then-senator’s visit to the Middle East and Europe.

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