Liverpool's owners say they had no choice but to sack Kenny Dalglish following a disappointing season in the Premier League but insist he remains the 'heart and soul' of the club.
Dalglish's departure has been confirmed after days of intense speculation about his future in the wake of an inconsistent campaign.
While the Reds won the Carling Cup and reached the final of the FA Cup, they only finished eighth in the league and Fenway Sports Group felt it was time for a change.
Having informed Dalglish of their decision when he travelled to Boston, Liverpool will now begin the search for a successor immediately.
Principal owner John Henry paid tribute to Dalglish as the news of his exit was officially announced, saying on the club's official website: "Kenny will always be more than a championship winning manager, more than a championship winning star player.
"He is in many ways the heart and soul of the club. He personifies everything that is good about Liverpool Football Club. He has always put the club and its supporters first. Kenny will always be a part of the family at Anfield.
"Our job now is to identify and recruit the right person to take this club forward and build on the strong foundations put in place during the last 18 months."
Ambition
Chairman Tom Werner explained why Liverpool had decided to make the decision to go forward without Dalglish at the helm.
"results in the Premier League have been disappointing and we believe to build on the progress that has already been made, we need to make a change. "
Tom Werner on sacking Kenny Dalglish Quotes of the week
He said: "Kenny came into the club as manager at our request at a time when Liverpool Football Club really needed him. He didn't ask to be manager; he was asked to assume the role.
"He did so because he knew the club needed him. He did more than anyone else to stabilise Liverpool over the past year-and-a-half and to get us once again looking forward. We owe him a great debt of gratitude.
"However, results in the Premier League have been disappointing and we believe to build on the progress that has already been made, we need to make a change.
"We are committed to delivering success for our supporters and our ambition remains resolute to return this great club to the elite of England and Europe, where it belongs."
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