He has informed the club's owners of this decision. The 56-year-old had only extended his contract early in 2022 until 2026.
"I can understand that it's a shock for a lot of people in this moment, when you hear it for the first time, but obviously I can explain it - or at least try to explain it," said Klopp on Friday in a YouTube video published by the club.
"I love absolutely everything about this club, I love everything about the city, I love everything about our supporters, I love the team, I love the staff. I love everything. But that I still take this decision shows you that I am convinced it is the one I have to take," Klopp continued.
"It is that I am, how can I say it, running out of energy. I have no problem now, obviously, I knew it already for longer that I will have to announce it at one point, but I am absolutely fine now. I know that I cannot do the job again and again and again and again," Klopp explains the reasons for his departure in the video.
The news is a huge shock to Liverpool fans. Klopp took over the club in 2015 and brought the then crisis-ridden club back to its former strength and made himself a fan favourite on Merseyside with his successes and his manner.
With Liverpool, Klopp won the FA Cup (21/22), the Champions League (2018/2019) and the English Championship (2019/2020), among others.
Along with Klopp, assistant coaches Pepijn Lijnders and Peter Krawietz, as well as elite development coach Vitor Matos, will also leave their posts at Liverpool at the end of the season. Lijnders apparently wants to take on a coaching position himself soon.