The Argentine was brought to Anfield on a free transfer from Atletico Madrid in January 2010 by then manager Rafael Benitez, yet initially only featured sporadically.
His career at Anfield took off, however, under Roy Hodgson, as the 31-year-old notched 10 goals in 28 Premier League appearances, including two hat-tricks, against Birmingham City and Fulham respectively.
A statement on the club’s official website confirmed the news: “Liverpool Football Club can today confirm that Maxi Rodriguez has joined Newell's Old Boys in Argentina.
“Maxi, who arrived at Anfield from Atletico Madrid in January 2010, netted 17 goals in 73 appearances for the Reds.
“Highlights of the midfielder's Anfield career include two hat-tricks in the space of a couple of weeks against Birmingham and Fulham in 2011 as well as important strikes against Chelsea at Stamford Bridge in November of that year.
“Every2one at Liverpool FC would like to thank Maxi for his contribution to the club and wish him all the best for the future.
New Liverpool manager Brendan Rodgers had previously confirmed his attempts to keep Rodriguez at Anfield, suggesting the midfielder would “understand 120 per cent” his tactical approach.
Rodgers told the Daily Mirror: "I would like him to stay, but sometimes there are issues that surround that and I understand that - which is why I am speaking to him now.”
Rodriguez thanked Liverpool and their fans upon the announcement of his departure.
"Thank you very much to the "Red" for your love. I'll take in my heart," the winger wrote on his official Twitter account.