From what I have gathered and this includes a new item being circulated on teletext in the past hour is that Gerrard Houllier will leave the club tomorrow, Monday 24th May. The club will call the departure "amicable" but the reality will be that Houllier will be sacked and will be paid to keep quiet.
From what I have heard Martin O' Neill is not a strong candidate for the job and Moores'/Parry's first choice is Beneitz of Valencia. Benetiz's agent has already confirmed that Liverpool have been in contact with him about a move.
I'm not saying the above is correct but out of all the rumours I have heard the above seems the most plausible.
I think that Houllier will be sacked this week and we'll have a new face in within 10 days.