meaning Liverpool need to start thinking about how they might replace him.
The 26-year-old right-back has won it all since making his Reds debut in 2016, including the Premier League and Champions League.
It's fair to say he leaves a sizeable void at right-back.
So what do Liverpool do next - and who could they bring to Anfield?
What are Liverpool losing?
As a playmaking right back, Alexander-Arnold has established a name for himself, and his creative output continues to rise season after season. Under Jurgen Klopp, the England international's talents were used in a variety of ways.
He started his career as an all-action right-back working in tandem with Andy Robertson, his full-back partner on the other flank.
Then Klopp experimented with the idea of Alexander-Arnold playing further up the pitch, asking him to take on an inverted role and receive the ball in midfield, where there wasn't always the same space he had in his usual position.
Since Arne Slot has taken over as manager, Alexander-Arnold has continued to do this, often as a means to fashion one-against-one opportunities for Mohamed Salah on the right wing.
The England international has repeatedly demonstrated his value to Liverpool, particularly when it comes to playing out of the back and creating chances. And his influence has remained strong this season, even with his role adjusted under Slot.
Throughout his career, Alexander-Arnold has been asked about his defense. But he has arguably become an even better defender under Slot, averaging more tackles and interceptions per match than before.
Can Bradley step up?
Conor Bradley has been Alexander-Arnold's understudy since making the step up to the first team. The Northern Ireland international will inevitably be involved in the conversations around the replacement in the right-back spot.
Bradley has played just over 1,000 minutes in the starting lineup this season, but it has been difficult for him to get a regular role. He has struggled to get game time because he is competing with Alexander-Arnold for a spot, but he has also been hindered by recurring injuries that have lasted for a long time. But Bradley - who offers a significantly different profile at full-back than Alexander-Arnold - has always shown huge promise whenever he has played.
The 21-year-old has a great appetite for defensive work and enjoys getting into physical duels, which dovetails with Slot's desire for Liverpool players to maintain a strong counter-press.
Bradley's biggest strength perhaps is his off-ball movement, constantly darting with speed into underlapping runs beyond his winger to provide an option to pass to, and stretch the opposition backline.
Bradley was receiving the ball at least seven times per game in positions closer to the opposing goal in a small sample of about 750 league minutes last season, or 7.62 progressive receptions per match. Bradley may get more minutes without Alexander-Arnold to contend with - but his injury record may force Liverpool to enter the transfer market.
Who could Liverpool get?
Depending on how Slot chooses to configure the full-back roles this summer, with a potential replacement for Robertson also needed, there are a few players worth considering for Liverpool. Here are three who you may not have thought of...
Guela Doue (Strasbourg)
Guela Doue is 27 games into his second full season of senior football in Ligue 1, but is already making plenty of waves at Strasbourg under 40-year-old former Hull manager Liam Rosenior.
After breaking through in the 2023-24 season at Rennes, Doue has demonstrated his versatility since his switch to Strasbourg. The Ivory Coast international, who is 22 years old, is a right back who can play wide center back in a three or right wing back. Doue's strengths lie in his ability to defend in one-against-one duels with intensity and move the ball upfield with his passes and carries. He can show a little flair on the ball when he gets the chance to bomb forward at right back. This season in Ligue 1, the versatile defender has averaged 6.8 progressive carries with the ball, ranking second only to Diego Moreira at Strasbourg. Like Alexander-Arnold, Doue likes receiving the ball deeper in his own half before progressing the ball further up the pitch with long passes forward to his winger or striker.
Doue would be ideal for Slot's backline if they plan to bring in an adventurous full-back on the other side - Bournemouth's Milos Kerkez has been strongly linked with a move.
Ajax's Anton Gaaei Anton Gaaei, known as Ajax's "Danish Beckham," has made rapid progress to become Francesco Farioli's first-choice right back this season. The 21-year-old, who joined Ajax after three seasons in the Danish Superliga with Viborg, has two goals and four assists in 21 Eredivisie appearances this term.
What immediately stands out about Gaaei is both the quality and variety of his crossing. He can cross the ball from deeper areas or hit the byline and cut back into the box with a lot of power from his right boot. His trademark is a low cross hit diagonally to go past defenders to connect with onrushing team-mates.
He did exactly so in the most recent De Klassieker between Ajax and Feyenoord to set up the winner late in added time.
Besides his crossing ability, Gaaei continues to improve on the defensive side of his game, which is helped by his excellent burst of pace in tracking back as well as making useful off-ball runs beyond his winger.
Entrusted with set-piece taking as well, the young Dane benefits from Ajax's dominant style of play, which sees him generate about five crosses per match.
Still only in his second season in Dutch football, signing Gaaei will very much be a project signing for Liverpool but one that could well pay off in the long run.
Martim Fernandes (Porto)
The youngest player of the three, and arguably the one with the greatest potential, is Martim Fernandes, who has impressed many since breaking into the Porto first team this season.
In 21 Liga Portugal appearances, Fernandes has five assists to his name and at just 19 years of age, is already a key creative cog in the side.
He enjoys playing on the front foot and much like Alexander-Arnold, he is an excellent crosser of the ball, adept at delivering into dangerous zones inside the opposition's six-yard box.
No wonder he is averaging an expected assists (xA) per match figure of 0.31 in the Portuguese top flight, a hugely impressive figure considering his age.
The young Portuguese provides an option on the flanks by playing high and wide up the pitch when Porto are attacking but is also capable of adding variety by making darting runs for the centre-backs to pass to, beyond the last defensive line of the opposition.
The Porto number 52 shows promising movement while underlapping or overlapping to hit the byline to cross, and can manoeuvre in tight spaces to curl a cross into the box, much as Alexander-Arnold does.
This season, Fernandes has averaged 3.61 crosses per match in the Liga Portugal. His composure on the ball under pressure is impressive - and he has an excellent engine for the defensive side of the game. Fernandes makes for an excellent raw talent who could fit the Alexander-Arnold mould for Liverpool.
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