Liverpool have made manager Kenny Dalglish a two-year contract offer.
The Sunday Express says e 60-year-old Kop legend, who has transformed the club's fortunes since replacing the sacked Roy Hodgson in January, had asked American owners John W Henry and Tom Werner for a four-year deal.
Henry and Werner were reluctant to look beyond two years but have promised a review if progress continues to be made under Dalglish.
It is understood that Dalglish wants a lucrative financial package to compensate for a lack of long-term security. Those negotiations are still going on.
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