Manager Rafa Benitez is set to sign a new long-term contract with Liverpool who agreed to his transfer demands.

Benitez refused to sign a four-and-a-half year contract extension last month because of the club's refusal to give him a free reign over transfer matters.

The Mirror reported that Liverpool's co-owner Tom Hicks traveled to Anfield at the weekend and informed Benitez that chief executive Rick Parry will no longer control all transfer matters with the manager being given full control over future transfers in and out of Anfield.

The new contract will take Benitez through till June 2013 and is said to be worth 20 million pounds.

A source close to Hicks said: "The owners have had a number of conversations with Rafa Benitez on the telephone this week and they agree with his view on how transfer business will be conducted.

"Tom Hicks and George Gillett hope to conclude the contract while they are in England."

Parry will now be asked to concentrate on the commercial side of the club's business while leaving the Spanish manager to pick and choose who he wants at the club.