A former accountant, Parry made his name in football as chief executive of the English Premier League upon its inception in 1992 and moved to Liverpool in 1997. He leaves by mutual consent.
"I have had 12 very exciting years at Liverpool and am extremely proud of what has been achieved by the club over that period," the 54-year-old said in a statement on the club's website.
"I will be leaving at the end of the season knowing that the club remains strong and with a set of supporters who deserve success in all that Liverpool does," he added.
Parry has not enjoyed a smooth relationship with the club's American co-chairman Tom Hicks, who last year described Parry's tenure as a "disaster" and demanded his resignation.
On Friday, however, Hicks and co-chairman George Gillett thanked Parry, a Liverpool fan, for his service to the club.
"Rick's commitment to Liverpool is epitomised by his desire to ensure that his transitional period is managed efficiently and we are grateful to him for his help. He will always remain a friend of the football club," Hicks said in the statement.
The club said Parry would stay until the end of the season in order for a smooth transition to take place, but made no indications about who will replace him.
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