Just a month ago chairman Tom Werner, after relieving director of football Damien Comolli of his duties, insisted the 61-year-old Scot had their full backing. But with the Reds finishing eighth, their lowest league position for 18 years, FSG took the decision to dismiss Dalglish.
A day after Dalglish had returned from a face-to-face meeting with Henry and Werner in the US, the Americans brought his 16-month second spell in charge to an end.
Werner admitted Dalglish, who guided Liverpool to a first trophy in six years winning the Carling Cup and reaching the FA Cup final where they lost to Chelsea, had done an important job stabilising the club after they sacked Roy Hodgson.
“Kenny came into the club as manager at our request at a time when Liverpool FC really needed him,” said the Liverpool chairman. “He did more than anyone else to stabilise Liverpool over the past year and a half and to get us once again looking forward.
“However, results in the Premier League have been disappointing and we believe to build on the progress that has already been made, we need to make a change.’’
Dalglish said last night: “I am disappointed with results in the league but I would not have swapped the Carling Cup win for anything as I know how much it meant to our fans and the club to be back winning trophies,” said Dalglish. Whilst I am disappointed to be leaving the club, the matter has been handled by the owners... in an honourable, respectful and dignified way and reflects on the quality of the people involved and their continued desire to move the football club forward in the same way as when they arrived here.”