Benitez explained he wanted a new deal to give him more control over football matters instead of having to answer to a club chief executive.

The Echo said that Benitez, stressing money was not the issue, had informed American owners Tom Hicks and George Gillett.

'The owners feel that the manager's decisions need to be subject to the chief executive. But I know that I am subject to results and to our fans and they are the best judges I will ever have,' Benitez said.

Benitez, 48, had earlier indicated that 'we have agreed the length of contract and we have agreed the salary' but still had to reach agreement on 'my role and my responsibilities as manager of the club'. Details of the length of the contract and the salary offered to the Liverpool manager have not been announced.

The Spaniard, whose current contract runs up until 2010, has been confined to the stands since surgery for a kidney stone and will shortly undergo a third operation.

He is due to enter hospital for surgery on Wednesday but hopes to be back in time for league and FA Cup derbies against Everton.

Assistant Sammy Lee takes charge in his absence. -- AFP