Benitez contract blow for Reds

Rafael Benitez has turned down Liverpool's new contract offer after being told he will not have overall control of transfer activity or a stronger influence on the running of the club's academy.

The Liverpool manager disagrees with owners George Gillett and Tom Hicks over what his role should entail. The news comes at the worst possible time for the club who play Merseyside rivals Everton in the Barclays Premier League on Monday.

Benitez told the Liverpool Echo: "This is solely about being allowed to manage Liverpool Football Club to the best of my abilities as I see them."

He added: "I believe that this club has the potential to improve - and I just want to be able to help this to happen."

Benitez has steered Liverpool to the top of the Premier League, as they pursue a first title in the top flight since 1990, however Manchester United are currently hot on their heels and will go to the summit if they defeat Bolton on Saturday.

Benitez has less than 18 months remaining on his current contract, and had already indicated he was satisfied with the length of the new deal and the financial terms.

However, his determination to have the deciding say on key issues concerning his team has become all-important in the negotiations.

According to Benitez, he is being asked to defer to chief executive Rick Parry on transfer issues he would expect to have direct responsibility for, given Liverpool do not have a director of football.

"I will continue to do my job as manager and concentrate on the thing that our fans want me to focus on - winning trophies for them," he added.

"From the first day I came to the club, I have only ever given 100% - and I will continue to do this."