Trudeau's office released a statement following the resignation saying Minister Sajjan would be assuming Wilson-Raybould's responsibilities as acting Minister of Veterans Affairs.
"Ms. Wilson-Raybould's appointment as minister of Justice and Attorney General was celebrated by many First Nations people as a tremendous accomplishment and testament to her expertise, experience and intellect", he said in an emailed statement.
Wilson-Raybould also disclosed that she has hired former Supreme Court Justice Thomas Albert Cromwell to advise her on what she is "legally permitted" to discuss.
Shortly before her resignation announcement, the Union of British Columbia Indian Chiefs issued an open letter to Trudeau demanding that he publicly condemn "the racist and sexist innuendo" that's circulated about Wilson-Raybould since her demotion, suggesting that she's hard to work with and not a team player.
The Liberal government maintains that while discussions on the matter took place with Wilson-Raybould, she wasn't pressured or told to issue a directive to the prosecutor.
"The motion simply was you'll go to veterans affairs, It's lower on the totem pole so to speak, but the other thing was that you know there was a struggle to over where he would put the new rights portfolio and Jody rightfully wanted it in the Attorney General's office, Trudeau made a decision to give it to Carolyn Bennett, and it's died now, nothing's happened since that took place", said Wilson-Raybould's father.
Commissioner Mario Dion's office announced on Monday that he has launched an investigation in the case because he has "reason to believe that a possible contravention" of the Conflict of Interest Act has occurred, specifically regarding a public office holder seeking to improperly influence a decision of another person.
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Does that mean the Liberals will allow the committee to hear from Wilson-Raybould?
Trudeau could simply waive whatever solicitor-client privilege exists in this matter and let Wilson-Raybould speak.
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Given how the DeMar DeRozan trade went down, its hardly surprising the All-Star is keeping one eye open just in case he is moved. He also said that it's more likely that Marc Gasol is moved at the deadline than Conley.
Because if anyone, particularly the attorney general, felt that we were not doing our job fully, responsibly and according to all the rules, as a government, it was her responsibility to come forward to me this past fall and highlight that directly to me.
"What happened to me was a real tell-tale sign of how Trudeau's government is operating".
Her resignation is a potential blow to Trudeau as he faces re-election this year.
Wilson-Raybould was the Attorney General of Canada from November 4, 2015, until January 14, 2019 and is at the centre of the ethics investigation.
"Mr. Trudeau's ethical lapses and his disastrous handling of this latest scandal have thrown his government into chaos", Conservative leader Andrew Scheer said in a statement.
Wilson-Raybould hasn't spoken about those allegations, which could amount to obstruction of justice charges for someone in the PMO.
"MKO sees the resignation of Jody Wilson-Raybould as a significant step backwards in our longstanding efforts to advance reconciliation between the MKO Treaty Nations and Canada".
She thanks her staff, officials and Canadians who supported her while in cabinet.
Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs says Wilson-Raybould's treatment by the federal Liberals will cost them First Nation support. "It doesn't help them that Wilson-Raybould's father (influential First Nations leader Bill Wilson) is calling them out on that failure".
"The current Liberal brand has been taking a beating on this portfolio", she said.