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Wigan boss Roberto Martinez and former Anfield manager Rafa Benirtez have been made favourites for the Liverpool job.
Odds have also been slashed on former Barcelona boss Frank Riijkaard.
ITV Granada reports that Kenny Dalglish will not remain at Liverpool in any capacity after leaving his post as manager.
The Aston Villa goalkeeper Shay Given, who worked with Kenny Dalglish at Newcastle has tweeted:
KennY Dalglish's daughter, the sports presenter Kelly Cates has tweeted to confirm KennY Dalglish has left his post as Liverpool manager:
Press Association Sport are reporting that Kenny Dalglish is to leave his job as manager of Liverpool today.
Rumours began circulating yesterday that his second spell Anfield was coming to an end and it is understood that is set to be officially confirmed later today.
Kenny Dalglish is reported to have left his post as manager at Liverpool FC after a meeting with the clubs owners. His recent record has seen the reds:
- Win the Carling Cup, but
- Lose the FA Cup final to Chelsea
- Finish 8th in the league - their worst showing for 18 years
Liverpool are expected to make an announcement about the future of the club shortly following reports that Kenny Dalglish has left as manager.
The Daily Telegraph's football correspondent Henry Winter has tweeted that there are several reasons why Kenny Dalglish has left as Liverpool manager:
The BBC have said that Kenny Dalglish has left his post as manager of Liverpool football club, they are reporting that he had been due to leave today - but has postponed his departure.
Latest ITV News reports
Kenny Dalglish will always be loved and welcome at Liverpool FC, regardless of what the club's American owners think
Legendary Liverpool manager Kenny Dalglish has been sacked after massive investment last year was followed by a poor league performance.