The 52-year-old Lee has already been linked with a role as first-team coach at West Ham, where he would team up once more with former boss Sam Allardyce.
After 11 years as part of the Anfield coaching staff between 1993 and 2004, Lee departed to take a full-time role under Sven-Goran Eriksson with England, leaving in 2005 to become assistant to Allardyce at Bolton before a short, ill-fated stint as manager at the Reebok Stadium two years later.
It was Benitez who brought the former midfielder, who made 295 appearances for Liverpool in the 1980s, back to Merseyside in 2008, where he served as assistant to the Spaniard, and later Roy Hodgson and Dalglish.
But with Clarke’s arrival as first-team coach in January - one of Dalglish’s first acts as manager - Lee has found his role altered in the past few months, and this parting of the ways comes as little surprise - though the timing appears odd, with Liverpool’s players due to report back for pre-season training next week.
Clarke is favourite to take over as Dalglish’s right-hand man, having performed similar roles at Chelsea and West Ham in the past.
The 50-year-old has been credited with a vast improvement in the Anfield outfit’s defensive record since his arrival, and Dalglish has repeatedly spoken highly of the Scot’s coaching abilities.
Offer To NU-Mad Fans Continues
Due to the amazing response from NU-Mad readers ... we have decided to continue our offer for you to buy "Magpies In Europe" for the amazing price of £5.99. The offer will end July 1st.
A 'THANK YOU' TO FOOTYMAD READERS ...
'MAGPIES IN EUROPE'
FOR £5.99 (inc post)
2010/11 has been NewcastleUtd-Mad's greatest season for page 'hits', and as a thank you to all readers we are giving you the chance (FOR TWO WEEKS ONLY) to purchase "MAGPIES IN EUROPE" for £5.99 (and that includes the postage).
*Normal price is £9.99
OFFER ENDS JULY 1st 2011
Although "Magpies In Europe" will not be launched OFFICIALLY until next season ... if you want a copy it is available NOW from this website ... and ONLY from this website!
FOREWORD BY FAIRS CUP HERO JOHN McNAMEE
Sports Journalist Richie Everson: "At last a book that the fabulous Newcastle United fans can relate to. It's informative, all the facts and figures are there, plus the 120 match reports from all the fixtures ... but it is the articles by the supporters that amazed me.
"I went to many of those games, and this is the only book I can honestly say 'hits the nail on the head'!
"Yes we know the results and the scorers, but some of the facts in this book had me so wrapped up in it I couldn't put it down.
"Was Benny Arentoft cup-tied when he played in the final? Big Wyn and his battle with John McGrath; McFaul scoring a penalty when the crowd had gone home; the trouble in Palermo; it is all amazing stuff.
"I would honestly give this book 10 out of 10."
MAGPIES IN EUROPE
Please include your address in a letter and send a cheque (or postal order) for £5.99 payable to Mr K Fletcher, to:
'MAGPIES IN EUROPE', K Fletcher, 5 Dunelm, Sacriston, Co Durham DH7 6NU.
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