The Daily Mail says the first signs of conflict came after Liverpool pulled out of the £17m race to sign Charlton and England striker Darren Bent.

Then the Reds made a £1m bid for West Ham winger Yossi Benayoun, which the Hammers described as an "insult".

Now a Reds source has told daily financial newspaper CityAM that Benitez has real concerns about the future ambitions of the club.

"If Gillett and Hicks cannot give Rafa a budget in which a sensible assault on the title, then Rafa will not hang around for long," he said.