Washington (CNN) President Donald Trump has been seeking counsel from confidantes on how he should handle the Stormy Daniels situation, a source close to the President tells CNN.

The source said Trump is being told by advisers not to fight Daniels' decision to break a confidentiality agreement because it would make him look guilty. This source said it's the only reason Trump has stayed quiet on the issue and hasn't been tweeting about it.

The source also believes the controversy potentially poses a bigger threat to Trump's presidency than Russia. The difference here compared to accusations from other women is that there's a signed agreement and a payment.

Daniels, an adult film actress whose real name is Stephanie Clifford, was paid $130,000 by Trump attorney Michael Cohen through a private LLC weeks before the 2016 election, and because Trump failed to sign the "hush agreement" regarding an alleged affair, Daniels' lawyers said in a lawsuit that the agreement to stay silent about her alleged encounter with the business magnate is invalid.

On Monday, Clifford offered to return the $130,000 in exchange to speak freely about her interactions with Trump.

Read More