A downhole tool includes a body supported from a running string; and a releasing assembly for releasing from set liner hanger portions of the tool to be retrieved to the surface. The releasing assembly includes a connecting member for engaging the tool with a liner hanger, a piston hydraulically moveable in response to fluid pressure within the tool body from a lock position to a release position for releasing the connecting member, and a clutch for rotationally releasing the tool body from the liner hanger. Rotation of the running string moves a nut upward along the body so that the running string may then be picked up to disengage the tool from the liner hanger.