Rafa Benitez leaving Liverpool
Rafael Benitez has left Liverpool by mutual consent after six years as manager.
The club have agreed a compensation package with the 50-year-old after a turbulent 2009-10 season.
Liverpool, having begun the campaign among the title favourites, finished a disappointing seventh in the Barclays Premier League and were eliminated from the Champions League at the group stage.
The Premier League result represented an alarming slide for the club after a runners-up finish the previous season.
Benitez, who memorably led the Reds to Champions League glory in 2005, told the club's official website, www.liverpoolfc.tv: "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 succeeded Gerard Houllier in 2004 and earned a place in Anfield legend with European success in his first season.
He followed that with FA Cup victory in 2006 and another Champions League final appearance 12 months after that, but the Premier League title remained elusive.
The past year has been particularly chastening and he failed to deliver on his "guarantee" of a top-four finish.
That has left the club without Champions League football next season and with club debts of £351million, the board are anxious to give the team fresh impetus.
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."
Liverpool will now begin the search for a successor but say no timescale has been put on an appointment.
Former Reds boss Kenny Dalglish, now an academy ambassador at the club, will assist managing director Christian Purslow to identify candidates.
With owners Tom Hicks and George Gillett looking to sell Liverpool, Dalglish himself has been suggested as a possible cheap, short-term option.
However, the likes of Roy Hodgson, Martin O'Neill and Guus Hiddink have already been heavily touted.
Reports the end of Benitez's reign was imminent began to appear last night but it was thought the financial situation could prove a sticking point.
Benitez signed a five-year contract in March 2009 and it was understood immediate termination could cost the club £16million.
That a compromise has been reached quickly, however, will now allow Benitez to seek immediate re-employment elsewhere.
The former Valencia boss, linked with Real Madrid and Juventus in recent months, is now being tipped as a potential successor to Jose Mourinho at European champions Inter Milan.
Rafa Benitez Factfile:
1960: Born Madrid, April 4.
1974: Joins Real Madrid, making slow progress through the ranks.
1981: Leaves Real Madrid without ever playing for the first team and joins Third Division Parla.
1983: Part of the Parla side which gains promotion to Segunda B.
1986: After retiring as a player, appointed to Real Madrid's coaching staff, starting off with the juniors and working up to the Under-19s.
1994: Leads Real Madrid's B team to seventh in Spain's Second Division and ends the season as assistant to first-team coach Vicente del Bosque.
1995: Appointed coach of Valladolid but sacked after 23 games with the team bottom of the Primera Liga.
1996: Takes over at Osasuna in Second Division, but lasts just nine games after recording one win.
1997: Joins Second Division outfit Extremadura and leads them to promotion.
1999: Extremadura relegated from top flight after a play-off defeat to Villarreal.
1999-2000: Quits Extremadura to take a year's sabbatical to study coaching in Italy and England.
2000: Appointed boss of Second Division Tenerife and leads them promotion.
2001: Replaces Hector Cuper at Valencia and leads the club to their first Primera Liga title in 31 years.
2004: Leads Valencia to their first ever double, lifting both the Primera Liga and the UEFA Cup.
June 1 - Valencia announce that Benitez and the club have agreed to part by mutual consent.
June 16 - Confirmed as Liverpool manager on five-year contract.
2005: May - Wins Champions League in his first season as Liverpool come from 3-0 down to beat AC Milan on penalties in Istanbul.
2007: February - American duo Tom Hicks and George Gillett buy the club from David Moores, vowing to bring the Premier League title to Anfield.
May - Benitez's side reach the Champions League final for the second time in three seasons but lose to AC Milan in Athens.
2008: Relations between Benitez and the Anfield hierarchy sour suddenly with doubts over the Spaniard's long-term future, largely due to differences of opinion over transfer policy.
2009: March 18 - Benitez signs a new contract after months of uncertainty, keeping him at Anfield until 2014. Liverpool finish second to Manchester United in the Premier League.
November - Finds his position under intense scrutiny after a run of six defeats in seven games in all competitions, the only win coming over United at Anfield, while they also crash out of the Champions League at the group stage.
December 13 - Benitez comes under further fire after Liverpool are dumped out of the FA Cup following a 2-1 third-round replay at home to Coca-Cola Championship strugglers Reading.
March 28 - Pledges his commitment to Liverpool before discussing his future with new club chairman Martin Broughton.
April 29 - Liverpool are knocked out of the Europa League at the semi-final stage by Atletico Madrid.
May 9 - A goalless draw on the final day at relegated Hull confirms Liverpool finish the Barclays Premier League season in seventh - their worst position since 1999.
June 3 - Benitez leaves his job as Liverpool manager by mutual consent.
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