Kenny Dalglish is to leave his job as Liverpool manager, Press Association Sport understands.
The Scot flew to the United States on Sunday to present his end-of-season review to principal owner John Henry and Tom Werner.
Rumours began circulating on Tuesday that his second spell Anfield was coming to an end and that is set to be officially confirmed later.
Despite winning the Carling Cup and reaching the final of the FA Cup the Reds' league form was disappointing.
A 14th defeat of the season at Swansea on the final day of the season condemned the club to an eighth-place finish, their worst for 18 years and their lowest points tally (52) since 1953/54.
Prior to the start of the season Henry had suggested that Champions League qualification was the minimum requirement.
There had been progress made under Dalglish, who initially took temporary charge in January 2011 with the club dangerously close to the foot of the table after a disastrous six months under Roy Hodgson.
The Scot was given a three-year contract a year ago but an inability to sufficiently close the gap to the top four despite a significant outlay on transfers appears to have persuaded Fenway Sports Group a change is required.