Kenny Dalglish has left his post as manager of Liverpool, with reports suggesting that the club's owners Fenway Sports Group have sacked the Anfield legend. Dalglish appears to have paid the price for Liveprool's disastrous league performances, which saw the club finish a lowly eighth in the Premier League.

It was thought that Liverpool's performances in the cups, winning the Carling Cup and finishing runners-up in the FA Cup, might be enough to secure his future. However, the American owners have acted decisively to try and ensure a turnaround of the team's fortunes next season.

Dalglish took over, initially temporarily, when Roy Hodgson was dismissed in January 2011, before being permanently installed last summer.

The club said the following about the parting of ways in a statement on Liverpool's website:

Fenway Sports Group (FSG) and Liverpool Football Club announced that Kenny Dalglish is to leave his post today as Manager after having his contract terminated.

After a careful and deliberative review of the season, the Club came to the decision that a change was appropriate. It is not a decision that was reached lightly or hastily.

The search for a new Manager will begin immediately.

Dalglish previously managed the club with success between 1985 and 1991. He is also revered as one of the club's greatest ever players in a spell that saw him win three European Cups.

And principal owner John W. Henry paid tribute to Dalglish following the announcement:

Kenny will always be more than a championship winning manager, more than a championship winning star player, he said ,according to the Liverpool website. 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.

Chairman Tom Werner also elaborated on the reasons for Dalglish's dismissal.

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, he said.

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.