Rafa Benitez close to new deal - Liverpool FC latest

Benitez is believed to want more control over transfers, currently the preserve of chief executive Rick Parry, and wants a greater say in the running of the Academy, before committing pen to paper.

But with the American owners not wanting any more internal rumblings, he may have to compromise.

As expected, talks about a new financial package went smoothly.

The Reds boss had already agreed a three year extension to a deal which has 18 months remaining.

The new four-and-a-half year deal will replace his existing contract.

Benitez is hoping the remaining terms of the contract can be thrashed out quickly, so he can focus on the Premier League title challenge.

Meanwhile, winger Albert Riera believes the Reds can silence some of the doubters who have emerged following three successive home draws, by winning at rivals Arsenal on Sunday.

"We've beaten United and Chelsea already this season so if we could now beat Arsenal maybe it would send a message out," he said.

"It would be a good response to go and win against Arsenal after the draws.

"If we do that some might say we're doing it the hard way - beating the top teams and not those we might be expected to win against - but people forget this is a very competitive championship.

"We're still in a good position."