The 42-year-old has served as Liverpool’s sporting director since November 2016, having initially joined as head of analytics in November 2011.
Edwards helped Liverpool secure high profile signings like Mohamed Salah, Alisson Becker, Virgil Van Dijk and Sadio Mane, who have all been instrumental in helping the Reds win the Premier League and Champions League in recent seasons.
Edward’s current assistant, Julian Ward, will be his replacement.
In an open letter to fans on the club's official website, Edwards said: “To be part of this club during this period has been a privilege due to the people I have been fortunate enough to work with and the success we have enjoyed.
“I had always planned to cap my time at the club to a max of 10 years. I’ve loved working here, but I am a big believer in change. I think it’s good for the individual and, in a work setting, good for the employer, too. Over my time here we have changed so many things (hopefully for the better) but someone new brings a different perspective, new ideas and can hopefully build (or change) on the things that have been put in place beforehand.
“Julian has been building up the skill set for this role for many years. Last year, he took on the role of assistant sporting director and over the past 12 months he has been introduced to other facets of the role that are vital to its success. I believe he is ideal for the role.
“Over the coming season I will continue to support him as we complete the leadership transition.”