The development comes after a turbulent season for the Reds in which they finished a disappointed seventh in the Barclays Premier League.

Benitez told the club's website, www.liverpoolfc.tv: "It is very sad for me to announce that I will no longer be manager of Liverpool FC.

"I would like to thank all of the staff and players for their efforts. I'll always keep in my heart the good times I've had here, the strong and loyal support of the fans in the tough times and the love from Liverpool.

"I have no words to thank you enough for all these years and I am very proud to say that I was your manager.

"Thank you so much once more and always remember: You'll never walk alone."