Rafa Benitez left to mull over deal impasse - Liverpool FC latest

However, American duo Gillett and Hicks are unwilling to grant the Spaniard such wide-ranging powers, leading to the present impasse.

Benitez admitted on Friday that his agent was "disappointed" at the lack of progress in negotiations, which began in November.

And now the Liverpool manager faces the choice of either reaching a compromise agreement or withdrawing from talks, with 18 months remaining on his current deal.

One good piece of news for Benitez is that the Football Association will not take any action over his attacks on Manchester United manager Sir Alex Ferguson during the past few days.

Reports yesterday that Emile Heskey has signed a pre-contract agreement to move to Liverpool at the end of the season are wide of the mark as such deals are prohibited between clubs in the same country.

But Benitez remains an admirer of the Wigan striker, who becomes a free agent in the summer.

Meanwhile, Daniel Agger's agent has reiterated the ball is in Liverpool's court with regards the defender's contract talks.

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Agger, a long-term target of AC Milan, revealed recently that negotiations had stalled over a new deal.

But of a rumoured £8.5million bid this month from the Serie A side, Agger's representative Per Steffensen said: "I don't want to make any comment. The only thing that's for sure today is that he is still a Liverpool player.

"His contract expires in the summer of 2010 and you have to speak with the club."

Injury ruled Agger out of Saturday's goalless draw at Stoke City but the centre-back hopes to be available for the Premier League visit of Everton on Monday.

Xabi Alonso is also confident of overcoming the foot injury that also meant he missed out at the weekend.

* LIVERPOOL LADIES have been kicked out of this season's FA Women's Cup after fielding an ineligible player.

Natalie Holt appeared during the 1-0 fourth round win at Nottingham Forest on January 4 despite being suspended for the tie.

And a committee yesterday removed Liverpool from the competition, with Forest now going forward to play Lincoln Ladies in the fifth round.