Fans turned on the Dutchman after a number of poor performances – the team lost 19 times this season – and there was some disharmony in the dressing room with Mohamed Salah the most outspoken.
Sources insist the decision was taken with "enormous reluctance", admitting it does not feel entirely fair to dispense with a coach who won only the club's second league title in 30 years.
However, it is understood the decision has been taken based on what they believe is the best chance of moving forward and the club's hierarchy feel the team needs to evolve again towards a more aggressive, front-foot, urgent style of football.
That reflects comments made by Salah in a social media post earlier this month when he called for a return to the "heavy metal football" played under predecessor Jurgen Klopp.
Liverpool insist the desire for a change of style should not be viewed as a criticism of Slot, whose calibre as one of Europe's leading coaches should not be doubted.
"Liverpool FC can confirm Arne Slot is to depart his role as head coach with immediate effect and that the process to appoint a successor is under way," said a statement.
"He leaves with a Premier League title to his name and our deepest gratitude and appreciation."
Liverpool, who stumbled to fifth place to secure Champions League football after taking just two points from their last four matches, will now spend the next few days refining a shortlist of suitable candidates and while they want to make a swift appointment they are intent on finding the right coach to implement their preferred style.
The timing of the decision, while welcomed by a large proportion of the fanbase, will anger those supporters who were clamouring for former midfielder Xabi Alonso to return to Anfield only for him to join Chelsea less than a fortnight ago.
Bournemouth's departing manager Andoni Iraola was already one of the bookmakers' favourites even before Slot was sacked, while Germany boss Julian Nagelsmann and Paris Saint-Germain manager Luis Enrique are also high up on that list.
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