Liverpool announced on Wednesday that the club has parted ways with manager Kenny Dalglish.
The Liverpool legend returned to take charge of the club in January 2011 following the departure of Roy Hodgson. But after a disappointing campaign in which Liverpool finished eighth in the Premiership and won just six times at home, Dalglish had his contract terminated.
Liverpool's principal owner, John Henry said: "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."
Dalglish helped Liverpool win the Carling Cup on penalty kicks against Cardiff City, while also guiding the Reds to the FA Cup final, where they lost 2-1 to Chelsea.
But it was Liverpool's league form that was the most troubling, along with the fact that the club spent over $150 million on players since Dalglish arrived, but saw little return on the investment.
Dalglish won three league titles in his first stint as Liverpool manager, but was still pleased to have had the chance to return to the sidelines despite the fact that his tenure ended prematurely.
"It has been an honor and a privilege to have had the chance to come back to Liverpool Football Club as manager," Dalglish said. "I greatly appreciate the work that the players and all of the staff put in during my time and feel proud that we delivered the club's first trophy in six years winning the Carling Cup and came close to a second trophy in the FA Cup final. Of course I am disappointed with results in the league, but I would not have swapped the Carling Cup win for anything as I know how much it meant to our fans and the club to be back winning trophies."