Rafa Benitez will sign a new Liverpool contract before next Sunday's Premier League match against Manchester City.

The Daily Mail reports that Anfield co-owners Tom Hicks and George Gillett have spoken to Benitez on a third contract offer on Saturday.

Both Hicks and Gillett have agreed to make concessions for the Spaniard - agreeing to hand him full control over transfers.

The only stumbling block for Benitez putting pen to a new four-and-a-half-year deal worth £15million is whether he will have full control over the academy.

A senior source was quoted as saying: 'The major points have been agreed and we hope things will be finalised soon.'