Liverpool legend Kenny Dalglish has welcomed the news that Rafa Benitez has signed a new five-year contract.

"We've just had two great results against Real Madrid and Manchester United and now the manager - the man we all believe is the right man for the job - has signed his contract. It's fantastic news at the end of a magnificent week," Dalglish told Liverpoolfc.tv.

"I think the timing of this is brilliant for everyone. It allows Rafa plenty of time to prepare for next season, to identify new players he may want to bring into the club and to look at any other changes he may want to make.

"If we'd gone into the summer with his future still undecided then it would have been difficult to make those sort of plans.

"Now that it's all sorted everyone can settle down and I don't think any Liverpool fan could possibly be any happier at this moment in time.

"It's been a very positive week for everyone connected with the club, but let's hope it's just the first of a number of positive weeks before the end of the season.

"This season isn't finished yet and it's by no means a foregone conclusion that Manchester United are going to win the league. We gave them a fright at the weekend so the title race is open again, and then on Friday we'll wait to see who we draw in the Champions League. There's still lots to play for and lots to be excited about.

"As Liverpool fans, I think we're just all really happy right now that the boys are performing very well and that Rafa has ended all the speculation about his future by signing his new deal. It's great news."