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Kenny Dalglish has been sacked as Liverpool manager.
The move came after the club won the Carling Cup, reached the FA Cup Final and finished eighth in the Premier League.
"Results in the Premier League have been disappointing and to build on the progress that has been made, we need to make a change," read a statement.
Dalglish's departure comes after face-to-face talks with principal owners John W Henry and Tom Werner in Boston on Monday.
Despite reaching the FA Cup final and winning the Carling Cup, the Reds finished eighth in the top flight having lost as many games as they won.
Dalglish had been expected to take a holiday this week, but flew to the US instead to review the season with Henry and Werner.
Wigan manager Roberto Martinez and former boss Rafael Benitez have been installed as early favourites to fill the position.
Dalglish's exit follows the departure of director of football Damien Comolli and the club's head of sports medicine Peter Brukner in April.
Dalglish returned to manage the club for a second time in the wake of Roy Hodgson's departure in January 2011, initially on a caretaker basis until the end of the season.
After a strong finish to the season he was made permanent manager on 12 May 2011 on a three-year contract, but has been unable to carry that momentum into the new campaign.
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