It is thought his departure is not related to his power struggle with manager Rafael Benitez but is linked to a breakdown in his relationship with joint owner Tom Hicks.

Liverpool refused to comment this morning but it is expected an official announcement will be made later today.

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Parry has been at the club for almost 11 years but last April Hicks asked him to resign, a move Parry branded "offensive".

Parry sided with co-owner George Gillett, who refused to back Hicks' request, but as the relationship between the two Americans has grown increasingly strained over the last year, Parry's position has become more unstable.

It is reported he has been negotiating a pay-off over the past fortnight.

This latest news comes at the end of a hectic week for the Reds, during which Benitez was rumoured to be on the verge of quitting the club ahead of the 1-0 defeat of Real Madrid in the Champions League last 16 only to insist he would be staying.

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