IT’S A DREAM come true for most Liverpool fans as Kop legend Kenny Dalglish has been handed the reins again.

Hodgson has left the club by “mutual consent” – and Dalglish has been installed as caretaker manager until the end of the season.

Hodgson, 63, has been under severe pressure after losing nine out of 20 Premier League matches and bemoaning the lack of “the famous Anfield support”.

Following the 3-1 defeat at Blackburn on Wednesday, owner John Henry finally decided to remove Hodgson this morning “in the best interests of the club”.

In a statement the former Fulham boss said the “last few months [were] some of the most challenging of my career”.

Being asked to manage Liverpool Football Club was a great privilege. Any manager would be honoured to manage a club with such an incredible history, such embedded tradition and such an amazing set of fans. Liverpool is one of the great clubs in world football.

I am very sad not to have been able to put my stamp on the squad, to be given the time to bring new players into the club in this transfer window and to have been able to be part of the rebuilding process at Liverpool.

The club has some great, world-class players, with whom it has been a pleasure to work and I wish the entire squad well for the rest of the season.

And now amazingly for fans, Dalglish, who managed the Reds for nearly six years between May 1985 and February 1991, will be on the Old Trafford bench tomorrow.

Henry added: “We are delighted that Dalglish has agreed to step in and manage the team for Sunday’s FA Cup tie and for the remainder of the season.

Kenny was not just a legendary footballer, he was the third of our three most successful managers – three giants. We are extraordinarily fortunate and grateful that he has decided to step in during the middle of this season.”

The club’s American owners spent Thursday and Friday contemplating Hodgson’s future after the defeat to Blackburn.

Hodgson’s weekly press conference ahead of the FA Cup tie with Manchester United was cancelled yesterday.

Liverpool are 12th in the Premier League table following the 3-1 loss at Ewood Park – their ninth defeat in 20 top-flight games this season.

With over half the campaign gone, the 18-times league champions are currently four points above the relegation zone.

Hodgson left Fulham to replace Rafael Benitez at Anfield in July but has struggled to win over the Liverpool fans as his side have laboured in mid-table.

New owner, Henry’s New England Sports Ventures, who are now known as Fenway Sports Group, took control at Anfield earlier this season and immediately gave their backing to the boss.

But Hodgson has seen his position come under ever-increasing scrutiny due to the Reds' poor form.

Is this the right move Liverpool fan?

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Mark Lawrenson's verdict

Liverpool's lowlights under Hodgson

'Kenny's achievements are oddly underplayed'

King Kenny's back after 20 years