The 47-year-old, who first joined Liverpool's football operation in 2011 and rose to become sporting director between 2016 and 2022, returned to Anfield in an expanded role in March 2024, working above sporting director Richard Hughes, a role he had appointed Hughes to himself.
Edwards leaves with one year still to run on his contract, having informed FSG's hierarchy of his decision last autumn. FSG president Mike Gordon is expected to take back direct oversight of football operations rather than have Edwards replaced.
FSG described the exit as a "planned transition following the completion of key strategic priorities", adding that Edwards had helped oversee the club through a significant period of change, including a new football leadership structure and the appointment of a new head coach.
When Edwards agreed to return in 2024, he was said to be motivated chiefly by the chance to help lead FSG's push into a multi-club ownership model. According to The Athletic's James Pearce, those plans have since been effectively shelved, leaving Edwards frustrated and prompting his decision to step away.
Edwards said in a statement: "It has been a privilege to return to Fenway Sports Group and Liverpool Football Club at such an important moment. I leave believing Liverpool is in a strong position, with outstanding people, a clear direction and the foundations in place for continued success."
He earned a reputation as a transfer guru during his first stint at Anfield, joining as head of performance analysis in 2011 before rising through the ranks to sporting director in 2016. Liverpool's data-led recruitment under Edwards proved highly successful, with signings including Mohamed Salah, Andy Robertson and Sadio Mane helping the club win the Champions League in 2019 and a 19th English league title in 2020.
Liverpool went on to claim a historic 20th top-flight title under Arne Slot in 2025, though Slot was sacked following a difficult 2025/26 campaign and has since been replaced by Andoni Iraola.
Edwards attracted interest from several leading clubs, including Manchester United and Chelsea, during his previous departure from Liverpool, though his next move remains unclear.