On Thursday evening the club released a single paragraph statement confirming that Dalglish's contract had been terminated.

O'Neill wants sole control

The statement read: "The board of directors of Celtic plc today announced that the contract of Kenny Dalglish, director of football operations, has been terminated."

It brings to an end months of speculation surrounding Dalglish's future.

The former Celtic and Liverpool idol was instrumental in bringing John Barnes to the club.

Chequered career

Barnes himself was sacked after less than one season in the job of manager.

Dalglish has had a chequered career as a manager.

He was appointed player-manager of Liverpool in 1985 where he went on to win three league titles and two FA Cups.

His reign there came to a surprise end when he announced his resignation in February of 1991, citing the pressures of management as his reason.

As a player and a manager, Dalglish had witnessed both the Heysel and Hillsborough tragedies, events which clearly had a profound effect on him.

Dalglish in happier times

But in October of the same year, he took over as manager of Blackburn Rovers where he enjoyed the benefit of Sir Jack Walker's open cheque book.

He guided the club to its first championship victory for 81 years in 1995 before taking over as director of football.

Shortly afterwards, he left the club and was appointed business development manager for Rangers chairman David Murray's company Carnegie Sports International.

Champions League

The lure of managing another top club was too much, however, and at the beginning of 1997 he succeeded Kevin Keegan as Newcastle manager.

The Tyneside club finished as runners-up to Manchester United, qualifying for the Champions League.

The following season, though, the club's league form dropped and a relegation battle ensued.

After surviving that, Dalglish took the club to Wembley where they were beaten 2-0 by Arsenal.

Dalglish recommended John Barnes

Dalglish left Newcastle at the beginning of the 1998-99 season, during which he launched a failed bid, along with Simple Minds singer Jim Kerr, to buy out the stake of then Celtic chief executive Fergus McCann.

Almost exactly a year ago, he, along with John Barnes, was handed the job of guiding Celtic back to greatness.

But a barren year for the club ended with Dalglish in sole charge after Barnes was sacked.

Reports that he would be allowed to continue in that position next season were circulated, with Dalglish unwilling to declare his intent.

As recently as 2 June, though, he insisted he would be continuing in his role as director of football.

That decision, it appears, was ultimately taken out of his hands.