Ward had only taken up his role in the summer, replacing Michael Edwards, but has decided to depart as he wants to take a break from football.
Liverpool are understood to be surprised and disappointed with Ward’s decision to leave, but have reluctantly accepted his wishes.
The Reds have already begun looking for a new sporting director and manager Jurgen Klopp, who recently extended his contract until 2026, will play a pivotal role in the process along with chief executive Billy Hogan.
Liverpool have become one of the best operators in the transfer market in recent seasons and they will hope that success can continue.
The club have lost Edwards and now Ward, but key figures including head of recruitment Dave Fallows and chief scout Barry Hunter remain in place with big roles to play.