"There is no reason, no reason for that to happen," Obama said at a farewell ceremony for outgoing Defense Secretary Leon Panetta.

"Putting our fiscal house in order calls for a balanced approach, not massive indiscriminate cuts that could have a severe impact on our military preparedness," he said.

Obama also expressed confidence in his nominee to replace Panetta as Pentagon chief, former Republican Senator Chuck Hagel, who had a rocky confirmation hearing last week with a full Senate vote yet to be scheduled.

"Keeping us prepared will be the mission of my nominee to be the next secretary of defense, a combat veteran with the experience, judgment and vision that our troops deserve, Chuck Hagel," Obama said.