Damien Comolli left his role as director by mutual consent with the club after just over a year in the role following widespread criticism of his transfer strategy.
During his time at the club, Comolli oversaw the signing of a number of key players including £22.8million Luis Suarez and Andy Carroll.
Liverpool has spent £115 million on players since Comolli joined in November 2010 from French club Saint-Etienne.
Comolli claimed he was leaving the club due to 'family reasons.'
In reaction to the news, Kenny Dalglish said: "Comolli has been really helpful in every transfer target we've gone for.
"Everyone who has come into the club since Damien has been here was of my choice.
Comolli has been really helpful in every transfer target
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"Once I made the choice who I wanted, Damien went away and did a fantastic job of bringing them in."
Liverpool, one of England's most successful clubs with 18 league titles, is a disappointing eighth in the standings and plays local rival Everton in the FA Cup semifinals on Saturday.