Sammy Lee has left his role as Liverpool's assistant manager by mutual consent, the club has confirmed.
His departure had been reported by BBC Radio Merseyside on Wednesday.
"We'd like to place on record our thanks for all of Sammy's hard work," Liverpool boss Kenny Dalglish told the club's official website.
"He has always been a credit to the football club and a credit to himself. Everyone at Liverpool FC wishes him all the best in his future career."
Former player Lee, 52, joined the Anfield coaching staff for the first time in 2003 before moving on to England's backroom team in 2004.
He then became assistant at Bolton in 2005 and then manager in 2007 before returning to Anfield in 2008.
"I returned to the Club in 2008 and I'm proud of the contribution I've been able to make since then," said Lee. "I want to wish Kenny, the players and the supporters all the best going forward."
Reports suggest that Lee's position will be filled by first-team coach Steve Clarke.
However, the club stated it would "continue to analyse the requirements of the backroom team and will make further announcements in due course".
Former Chelsea, Newcastle and West Ham assistant Clarke was brought to Anfield by caretaker manager Kenny Dalglish in January.
Clarke was then awarded a three-year deal once it was announced that fellow Scot Dalglish's position would be made permanent.