Klopp, who assumed the reins of Anfield in 2015 and successfully guided the Reds to their status as one of the powerhouses of European football, cited dwindling energy as the reason behind his decision.
Under the German's leadership, Liverpool claimed their first league title in 30 years in 2020 and experienced Champions League glory in 2019.
Currently enjoying a five-point lead at the summit of the Premier League, the 56-year-old manager will aim to bid farewell on a triumphant note by securing another league crown.
Acknowledging the potential shock generated by his announcement, Klopp expressed his deep affection for the club, the city, the fans, the team, and the staff in an interview on Liverpool's official website.
"I have an unwavering love for every aspect of this club...But the fact that I have made this decision highlights that it is the rightly one," Klopp shared.
He continued, "It's true that I am gradually running out of energy. While I currently feel no issues, I've been aware for a while that I would have to make this announcement at some point. Now, I am completely at peace with it."
Klopp confessed that he no longer possessed the ability to repeatedly undertake the demanding role he had fulfilled for years, giving rise to his decision to step aside.
The departure of the legendary Liverpool manager marks the end of an era, leaving behind an indelible imprint on the club and its history.