Principal owner John Henry heaped praise on the outgoing manager in a statement on the Liverpool FC website:
Kenny will always be more than a championship winning manager, more than a championship winning star player. 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.
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.