Sky sources understand Liverpool have parted company with manager Kenny Dalglish, with Wigan's Roberto Martinez favourite to replace him.

Dalglish returned to Liverpool in January 2011 as caretaker under new owners Fenway Sports Group and was then appointed on a three-year permanent deal last summer.

After spending £35million on Andy Carroll, he then invested a further £80million last summer, but Premier League results have been poor and despite a Carling Cup final success, it was their worst league campaign since the 1950s.

The Reds lost the FA Cup final to Chelsea and ended up finishing eighth in the league, below city rivals Everton.

After Dalglish flew to America earlier this week to meet the club's owners, a decision has been made to part ways and it is understood that FSG already have targets in mind.

Sky Sports understands that Wigan boss Martinez is top of their list of targets and the man who turned Aston Villa down last summer could find it hard to shun a switch to

managing director ian ayre also gone ????