Dalglish was summoned to Boston for a meeting with FSG on Tuesday and was said to have been left in limbo after clarification over his future was not forthcoming. However, his contract was terminated on Wednesday evening following "a careful and deliberate review of the season" which led the owners to conclude "that a change was appropriate". 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 won the
Carling Cup to secure a trophy in his first full season back in charge at Anfield but the club finished a disappointing eighth in the
Premier League and lost the FA Cup final to Chelsea. The manager was also severely criticised for his handling of the incident that saw Luis Suarez banned for eight games for racially abusing
Patrice Evra. Chairman
Tom Werner 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." Dalglish's departure is just the latest in a long line of recent changes to the Anfield power structure. Director of football
Damien Comolli, director of communications Ian Cotton and head of sports medicine and sports science Peter Brukner have all been recent casualties. Dalglish is one of Liverpool's greatest ever players and during his first spell as a manager won three league titles and two
FA Cups before stepping down in February 1991. He returned as manager when replacing
Roy Hodgson in January 2011. "It has been an honour and a privilege to have had the chance to come back to Liverpool Football Club as manager," he said. "I greatly appreciate the work that Steve (Clarke), Kevin (Keen), 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. "Whilst I am obviously disappointed to be leaving the football club, I can say that the matter has been handled by the owners and all concerned in an honourable, respectful and dignified way and reflects on the quality of the people involved and their continued desire to move the football club forward in the same way as when they arrived here. "I would like to thank all of the staff at the club for their effort and loyalty. I said when first approached about coming back as manager that I would always be of help if I can at any time and that offer remains the same. "Finally, I want to put on record my heartfelt gratitude to Liverpool's fans, who have always given me and the club their unwavering support. Without them neither the club nor I would have achieved anything."

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