The Portuguese playmaker sees his deal with the Reds run out this summer and will return to his homeland after signing a four-year deal to join Porto, which he called "a dream move" shortly after putting pen-to-paper.
As a result of Teixeira being under the age of 24, Liverpool are due compensation for the player - although his new employers will certainly feel they got a good deal given the player cost the Premier League side an initial £830,000 as a youth player four years ago.
Although Teixeira ultimately failed to make the breakthrough at Anfield, he displayed his potential in glimpses at first-team level and was once regarded as one of the club's most prodigious young talents.
He still has plenty of time to realise his promise and it's difficult to back against him doing so in his home country given his sublime dribbling, vision and skill - all of which made him stand out for the Reds' Under-21 side over the last few years.
The 23-year-old signed for the Reds from Sporting Lisbon in January 2012, impressing then-Liverpool Academy manager Frank McParland with his performances for Sporting's midfield in the NextGen Series in 2011-12.
He made his senior debut in a 3-2 league victory at Fulham in February 2014, coming off the bench in the 82nd minute and after helping force a late penalty to win Liverpool the game, was praised by captain Steven Gerrard and manager Brendan Rodgers for his impact.
Teixeira moves on from Reds due to lack of game time
But the Portugal U21 international has since failed to kick on and has added just seven appearances since then, all of which came under Jürgen Klopp in 2015-16 as the German regularly fielded a rotated side in cup competitions.
Despite a successful spell with Brighton & Hove Albion in the Championship the previous season, where he was named Young Player of the Year for scoring more than any of his teammates with six goals across 32 league appearances, despite his season ending in April due to a broken leg.
However, largely due to the immense competition in his position, Teixeira has never been able to make enough of an impression to establish a regular first-team berth - even despite scoring his first senior goal in the FA Cup against Exeter City back in January.
Teixeira, who would have demanded a minimum seven-figure amount had he joined another English club, rejected a new contract with Liverpool in search of more regular first-team football and was convinced by the offer of Porto, who finished third in the Primeira Liga last season.
Speaking after the move, he explained that he is "from the north [of Portugal]" and insisted that "to wear blue and white" has "always been a dream" of his.
"Now I can work at my club in my region and my country," continued Teixeira, who revealed that he "had other offers" to consider but did not "want anything other than to wear blue and white."
Meanwhile, six former prospects were released by the club last week with Daniel Cleary, Will Marsh, Ryan McLaughlin, Alex O'Hanlon, Kristof Polgar and Samed Yesil all let go.
Defender Tom Brewitt was also named on the list but has since signed a new long-term deal with the club. Having been on the club's books since the age of 10, the teenager has yet to make his senior debut.