The 47-year-old departs Anfield having overseen almost £700m of transfer spending across four windows, a spell that delivered a 20th Premier League title but also plenty of criticism as the champions slid to fifth last season. His exit had long been expected, even though his contract at Liverpool was not due to run out until June 2027.
Hughes joined from Bournemouth in the summer of 2024, brought in by Michael Edwards to lead the football operations department left behind by Jürgen Klopp. He was instrumental in appointing Arne Slot as Klopp's successor, and Slot delivered immediately, guiding Liverpool to the title in his first season in charge.
But results collapsed the following year, and Slot was dismissed before Andoni Iraola, another manager Hughes had previously worked with at Bournemouth, was brought in to replace him.
In his farewell statement, Hughes struck a warm tone.
"First and foremost, I would like to reiterate what I said upon my arrival — it has been a source of great pride to have been given the opportunity to serve this incredible and unique institution. That is something I will always be grateful for," he said.
"I'll always follow and support the club with great affection, and I wish everyone involved nothing but success for this season and beyond."
Mike Gordon, president of owners Fenway Sports Group, thanked Hughes for his contribution while confirming the search for a replacement is already under way.
"We respect Richard's life choices and wish him and his family well in their next venture," Gordon said.
Among the moves that defined Hughes' final summer at the club were the £125m signing of Alexander Isak and the £116m arrival of Florian Wirtz, on top of roughly £200m in further spending that included Bradley Barcola's move from Paris St-Germain.
Hughes is expected to be unveiled at Al-Hilal in the coming days, joining a Saudi Pro League club that has itself spent close to £180m raiding the Premier League this summer.
Managed by former Inter Milan coach Simone Inzaghi, Al-Hilal have brought in Brazil winger Gabriel Martinelli from Arsenal for £60m, Netherlands international Crysencio Summerville from West Ham for £60m, and England forward Ollie Watkins from Aston Villa in a deal worth around £51m — part of an aggressive recruitment drive aimed at reasserting themselves as the dominant force in Saudi football.