LIVERPOOL have confirmed they have parted company with manager Rafa Benitez by mutual consent.
The Spaniard has agreed a settlement package, believed to be in the region of £6million, after six years at the Anfield helm.
Although he guided the Reds to Champions League glory in his first season in charge, last term was an abject failure for his team when they failed to even qualify for the competition.
With doubts over the future of star duo Steven Gerrard and Fernando Torres, the club have decided the best option is to change the manager during the close season.
Benitez, 50, has been linked with the Inter Milan position vacated by Jose Mourinho after the former Chelsea boss jumped ship for Real Madrid in the wake of his latest European triumph.
"It is very sad for me to announce that I will no longer be manager of Liverpool FC," Benitez said in a statement on the club's official website.
"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."
Ambassador Kenny Dalglish and managing director Christian Purslow are to lead the hunt for a successor with a number of names already believed to be in the frame.
Dalglish is narrow favourite to take over the reins himself ahead of Martin O'Neill and Roy Hodgson.
Reds chairman Martin Broughton added: "Rafa will forever be part of Liverpool folklore after bringing home the Champions League following the epic final in Istanbul but, after a disappointing season, both parties felt a fresh start would be best for all concerned."
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