Liverpool chief executive Rick Parry will leave the club at the end of the season, the club has confirmed. It has been reported that his departure is not related to his power struggle with manager Rafael Benitez but is linked to a breakdown in his relationship with joint owner Tom Hicks.

Nevertheless, his exit may pave the way for Benitez to sign his new contract. One of the Spaniard's demands was to have more control over the signings and Parry's departure would appear to shift the power in his direction.

Of course, a replacement will have to be found because, while the owners may see this as a way of securing Benitez's future, they will be loathe to handing over total control to the Spaniard and will be keen to install a man of their choosing.

Parry had formed an alliance with George Gillett but he and Hicks have had their differences in the past. Last April he branded the American's request for him to resign as “offensive”.

He has also had to compete with Hicks forming a ‘shadow executive’ led by commercial director Ian Ayre and finance director Steve Nash, who operate out of a city centre office away from Anfield.

Ironically, the 54-year-old accountant, who joined the club from the FA Premier League in 1997, facilitated the owners’ purchase of the club in February 2007 after Dubai Investment Capital’s bid fell through. He was understood to have received a £500,00 bonus when the deal was completed.

In a statement released this morning, Hicks said: "Rick's commitment to Liverpool Football Club is epitomised by his desire to ensure that this transitional period is managed efficiently and we are grateful to him for his help. He will always remain a friend of the football club."

Gillett added: "I would like to thank Rick for his significant service to the Club and the assistance he has given us since we joined Liverpool. He has been integral to the club's success over the past decade and leaves with our best wishes for the future."

Parry said: "I have had 12 very exciting years at Liverpool and am extremely proud of what has been achieved by the club over that period.

"The victory in Madrid was a wonderful reminder of the many high points we have experienced and adds to the moments that make Liverpool and its magnificent fans so special.

"It has been a privilege to serve the club and as a lifelong supporter I wish the owners, Rafa, the players and the wonderful staff all the very best for the future. I will be leaving at the end of the season knowing that the club remains strong and with a set of supporters who deserve success in all that Liverpool does."

Rumours of boardroom discontent and instability have blighted Liverpool’s last two seasons, and rumours that Benitez was on the verge of quitting earlier this week threatened to overshadow the crucial 1-0 defeat of Real Madrid in the first leg of the Champions League last 16.

Parry has already considered resigning this season when he was touted to be chief executive of England’s 2018 World Cup bid but opted to remain at Anfield and stand his ground.

Having been born and raised on Merseyside, Parry studied at the University of Liverpool before becoming a management consultant.

He was chief executive of the Manchester 1992 Olympic bid and director of the 1996 bid, and was consulted about plans to found the Premier League in 1992 before becoming its first chief executive.

Liverpool confirmed they will begin their search for Parry’s replacement and will “update supporters and other stakeholders when appropriate”.