Liverpool FC have confirmed that manager Roy Hodgson has left the club by mutual consent.
Kenny Dalglish will take control of the team for Sunday's FA Cup third round clash against Manchester United, and will be in charge until the end of the season.
In a statement on the club's website, Roy Hodgson said: "Being asked to manage Liverpool Football Club was a great privilege.
"I have, however, found the last few months some of the most challenging of my career. I am very sad not to have been able to put my stamp on the squad, to be given the time to bring new players into the club in this transfer window and to have been able to be part of the rebuilding process at Liverpool. The club has some great, world-class players, with whom it has been a pleasure to work and I wish the entire squad well for the rest of the season."
Liverpool have only won three matches in their last 11 in all competitions and they are currently sitting 12th in the Premier League, 19 points behind leaders Man United, and only four off the relegation zone.
Liverpool's owner John Henry said: "We are grateful for Roy's efforts over the past six months, but both parties thought it in the best interests of the club that he stand down from his position as team manager. We wish him all the best for the future.
"We are delighted that Kenny Dalglish has agreed to step in and manage the team for Sunday's FA Cup tie at Old Trafford and for the remainder of the season."
Kenny Dalglish will have a difficult start to his tenure as manager though. After Manchester United in the FA Cup on Sunday, he faces a League away trip to Blackpool midweek and Everton in the Mersyside derby next weekend.