Liverpool have begun their search for a new manager after Rafa Benitez walked out with a £4m pay-off.
The Spaniard has accepted severance pay to end six years in charge of the Merseyside giants.
Benitez said: '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.'
Benitez will now be a strong favourite to replace Jose Mourinho as manager of Inter Milan.
A club statement read: 'Liverpool FC today confirmed that Rafael Benitez is to leave the club by mutual consent.
'Mr Benitez relinquishes his position as team manager after six years and the board of directors would like to place on record their grateful thanks for his services and wish him all the best in his future career.
'The board has now asked managing director Christian Purslow, with the assistance of club ambassador Kenny Dalglish, to begin a formal search to identify and assess potential candidates for the managerial position.
'No timescale has been placed on the process and Liverpool FC will make no further statement until a new manager is appointed.'
Chairman Martin Broughton said: '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.'
Among those being tipped to replace Benitez at Anfield are Fulham manager Roy Hodgson and former Manchester City boss Mark Hughes.
Benitez arrived as Liverpool boss from Valencia in 2004, and famously won the Champions League in his first season.
He also won the FA Cup in 2006, but they haven't won anything since and struggled badly last term.
Liverpool could only finish seventh in the Premier League, and were also knocked out in the group stages of the Champions League.
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