Brendan Rodgers has been sacked as manager of Liverpool.
Liverpool announced on their website that the Northern Irishman had been fired in order to give the club "the best opportunity for success on the pitch".
The decision was made after the Merseyside derby with Everton, which ended 1-1.
Jurgen Klopp, the former Borussia Dortmund manager who is currently on a sabbatical, is the favourite to take over.
A statement from the club read: "Liverpool Football Club has announced that Brendan Rodgers will leave his post with immediate effect after having his contract terminated. The process to appoint a new manager is under way.
Everton 1 Liverpool 1 player ratings
Everton 1 Liverpool 1 player ratings
1/22 Everton: Tim Howard 6 out of 10
Made a couple of impressive saves but his distribution was anything but assured.
2/22 Tyias Browning: 6 out of 10
A composed performance from the youngster. A reliable deputy to Coleman, but could soon challenge for a starting spot.
3/22 Phil Jagielka: 7 out of 10
The veteran produced a number of superb challenges at key moments. Remains an excellent reader of the game, even if he lacks pace.
4/22 Ramiro Funes Mori: 6 out of 10
Performed well for a player who has not had the luxury of much Premier League football. Worked well in tandem with Jagielka.
5/22 Brendan Galloway: 6 out of 10
Technically sound and methodical in his approach; the teenager looks to be a real prospect.
6/22 James McCarthy: 6 out of 10
Calm and composed presence in the centre of the park. Did his defensive work dutifully but also pressed forward when chances arose.
7/22 Gareth Barry: 6 out of 10
His crippling lack of pace would suggest a game such as this would pass him by, but his ability to read the game ensured he was not exposed.
8/22 Gerard Deulofeu: 5 out of 10
Struggled to make any kind of impact on the game. Very quiet but did produce the cross that led to Lukaku's equaliser.
9/22 Ross Barkley: 7 out of 10
Lost Ings for Liverpool's first goal, but played a key role in Everton's attack. His direct runs caused Liverpool plenty of problems, as did his delivery form wide areas.
10/22 Steven Naismith: 5 out of 10
Could not provide the cutting edge that he did against Chelsea, but ran and ran for the team.
11/22 Romelu Lukaku: 7 out of 10
Provided a much needed out ball up top and took his goal extremely well. Dominated in the air and linked up play with those around him.
12/22 Liverpool: Simon Mignolet 6 out of 10
The Belgian produced two superb saves in the first half but, ultimately, was let down by those in front of him.
13/22 Emre Can: 5 out of 10
The hot headed German got involved with Barkley unnecessarily and still does not look at home as part of a back three. At fault for Everton's goal.
14/22 Martin Skrtel: 5 out of 10
Relished the physical battle with Lukaku but did not have the appearance of a man in control. Composure can give way to panic.
15/22 Mamadou Sakho: 5 out of 10
Struggled when put under pressure by Everton. The Frenchman is far from composed in possession but needs to be within a back three.
16/22 Nathaniel Clyne: 6 out of 10
The full back pressed forward regularly but his final ball into the penalty area was below par.
17/22 James Milner: 6 out of 10
The engine room of Liverpool's midfield. Milner was all over the park and provided the assist for the opening goal. Reliable if not remarkable.
18/22 Lucas Leiva: 5 out of 10
Fortunate not to receive a second yellow card in the closing stages before he was given the hook. Did not make his presence felt.
19/22 Alberto Moreno: 4 out of 10
Failed to press Deulofeu for Everton's equaliser. The Spaniard's decision making is poor and he is simply not suited to the system that Liverpool played.
20/22 Philippe Coutinho: 6 out of 10
Did not sparkle like the world knows he can, but could not be accused of a lack of effort. Liverpool need him to step up on such occasions given his importance to the side.
21/22 Danny Ings: 7
The Englishman took his goal extremely well, which capped off his impressive individual week. Pressed Everton's back four constantly.
22/22 Daniel Sturridge: 6 out of 10
Showed plenty of endeavour, but rarely had a clear sight of goal. Starved of possession and struggled to grab a foothold in the game.
In a joint Fenway Sports Group statement, Principal Owner John W Henry, Chairman Tom Werner and President Mike Gordon said: “We would like to place on record our sincere thanks to Brendan Rodgers for the significant contribution he has made to the club and express our gratitude for his hard work and commitment.
“All of us have experienced some wonderful moments with Brendan as manager and we are confident he will enjoy a long career in the game.
“Although this has been a difficult decision, we believe it provides us with the best opportunity for success on the pitch. Ambition and winning are at the heart of what we want to bring to Liverpool and we believe this change gives us the best opportunity to deliver it.
“The search for a new manager is underway and we hope to make an appointment in a decisive and timely manner.”
Rodgers has been dogged by speculation about his future since the humiliating 6-1 defeat at Stoke on the final day of last season.
FSG initially came out in support of their manager, although they did effect changes on the coaching staff with Rodgers' close friend and assistant boss Colin Pascoe and first-team coach Mike Marsh being jettisoned in favour of England Under-19 coach Sean O'Driscoll and former midfielder Gary McAllister.
The Americans allowed Rodgers to spend £80million in the summer - much of which was recouped with the sale of Raheem Sterling to Manchester City for £49million - but performances have been far from what was expected, even if the side are still only three points off fourth place.
Injuries, most notably to captain Jordan Henderson, have prevented the Northern Irishman from fielding his strongest side so far this season while striker Daniel Sturridge has only just returned from a hip operation he had in May, but the owners have decided the club is not heading in the direction they want it to and have acted decisively.
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