ENGLAND - Kenny Dalglish's second stint in charge of Liverpool was ended by the club's American owners yesterday as the Anfield great paid the price for his side's worst Premier League finish for almost 20 years.

Once the dominant force in English football, Liverpool have not won the championship since 1990 and the club's eighth-place finish this season, when they finished 37 points behind champions Manchester City, forced the Fenway Sports Group to act.

"Fenway Sports Group and Liverpool Football Club announced that Kenny Dalglish is to leave his post today [yesterday] as manager after having his contract terminated," the club said in a statement.

Dalglish, who guided Liverpool to a League Cup triumph in February and also an FA Cup final appearance, is likely to remain a firm favourite at Anfield after a glorious career as player and then manager in his first spell which ended in 1991.

"It has been an honour and a privilege to have had the chance to come back to Liverpool Football Club as manager," said the Scot.