We understand that negotiations are underway by the American board to sack Rafael Benitez.

The Liverpool manager has increasing showed his frustration at the lack of funds being made available. Recently, reports on Merseyside suggested Rafa had on £5m to spend this summer, which wouldn't significantly add to the club's squad strength

Although we understand that Benitez is negotiating a pay-off his agent refused to agree that a deal has been offered for Rafa to leave Anfield

Manuel Garcia Quilon said: "We don't know anything more than what's being said. We're not saying anything."

It is believed that Benitez is currently in Italy for a holiday, amidst strife speculation of Inter Milan wanting him.

Inter president Massimo Moratti said: "Benitez is a manager I have always considered very good but for the moment he is engaged."

An Italian source added: "Inter have been happy for everyone to think they want Capello as it's taken everyone's attention away from Benitez."

The Americans are reportedly ready to pay a small compensation and we expect the sacking will be publicly portrayed as a mutual agreement to leave the club.

We believe the pay-off will be in the region of £3-5m

More to follow...

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