Rafa Benitez

Liverpool manager Rafa Benitez is set to start talks over a new contract after an amazing turnaround in his relationship with American owner Tom Hicks.

It appears that the tensions between the two, which had at one time seemed likely to lead to the Spaniard leaving the club at the end of the season, have been healed. Negotiations will begin shortly to extend his current contract which runs to 2010 by another two years.

The news comes in the same week that Hicks attempted to secure his own future at the club by trying to raise the £140 million needed to buy out partner George Gillet, who has reportedly become frustrated with increasing hostility from Reds fans.

Benitez looks to be getting his affairs together with the £18 million permanent signing of Javier Mascherano, an extended contract for Peter Crouch and a planned one-year deal for Sami Hyypia all on the cards.

“I have confidence I will be here for a long time - not just for two years” Benitez revealed last night. “I have 18 months left on my contract but I have a lot of confidence that it will be easier next season and I am sure the situation will change in the future.

“I have confidence that we are progressing in the right direction and at this moment the only thing I have in my mind is to progress with Liverpool and try to win titles.

“I am not looking anywhere else. I am really pleased here now and I think we will improve the situation in the future and that's why I want to stay for longer.

“People ask me why I want to stay here.

“It's because I know we can improve, I know it's a massive club, it's a top side and we can progress.

“So I want to do my best and I think we can improve things.”