Bookmakers reporting a rush of bets on the former Reds boss to rejoin the club, having opened at 33/1 he's now just 9/4 behind favourite Roberto Martinez
Dalglish is believed to have flown to Boston to meet with FSG to review the season and stepped down from his role in charge of the first team. Although 2011-12 saw Liverpool claim the Carling Cup after a win against Cardiff City, the Reds also finished in eighth place in the table, one spot below Everton and with their lowest points total in Premier League history.
Some fans will take solace in a second domestic cup final appearance at Wembley but a disappointing performance saw the Reds beaten by Chelsea.
The final league game of the campaign saw Dalglish's side lose 1-0 to Swansea at Liberty Stadium and brought a disappointing league season to a close on a sour note.
Many felt that achievements in the FA and Carling Cups are not enough to mask a disappointing league season.
A point made especially poignant when Dalglish has spent heavily during his time in charge including purchases including Andy Carroll, Stewart Downing and Jordan Henderson.
Roberto Martinez leads the market to replace Dalglish at 7/4 but it is Benitez who has attracted most of the money in Paddy Power's next manager market. Jose Mourinho is an outsider in the betting but a way behind the front two at 14/1. Frank Rijkaard's odds have also tumbled in the hours approaching the announcement that Dalglish was no longer in charge. He is now 8/1 and Norwich boss Paul Lambert is 14/1.
Martin O'Neill is sure to be linked with the role given his Liverpool connections and he can be backed at 18/1 together with former Chelsea boss Andre Villas-Boas.
Next Liverpool manager:
Roberto Martinez: 7/4
Rafa Benitez: 9/4
Frank Rijkaard: 8/1
Paul Lambert: 14/1
Jose Mourinho: 14/1
Martin O'Neill: 18/1
Jim Knight is Betting Editor at Goal.com and has been tipping football games since he was old enough to place a bet. He is a Leicester City fan, writer and member of the We Are Going Up Podcast
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