Sven Goran Eriksson has been linked with Rafa Benitez's job at Liverpool.

Eriksson wants to stay with Manchester City, but with his relationship with chairman Thaksin Shinawatra almost beyond repair, he is expected to leave.

The Daily Mail says Eriksson has apparently taken news of his impending demise with typical good grace but is, according to sources, "absolutely devastated" that Thaksin is planning to move him out.

The Swede will receive £1million in compensation and has taken two phone calls from his friend and agent Pini Zahavi in the past 24 hours promising to find him work.

There is little chance he could expect a new approach from Chelsea - four years after they tried to poach him from the FA - but it is understood that Eriksson's name was yesterday being mentioned in Liverpool's boardroom and at Benfica in Portugal.

Nevertheless, the Swede had set his heart on furthering his reputation as a club coach with City and remains incredulous that Thaksin sees a top-half Barclays Premier League finish as unacceptable in his first season.

Last night a source close to Eriksson said: "Sven knows it is results that have counted against him but can't really understand why.

"For example, if you flipped the two halves of the season round and had City starting moderately but finishing really well would he be sacked? Of course he wouldn't."