Manchester City are keeping tabs on Rafa Benitez's contract stand-off with Liverpool.

The People says City are closely watching developments.

Benitez is at the lowest ebb of his five years at Anfield and feels frustrated, under-valued and publicly exposed while the real villains are hiding from the spotlight.

He blames the internal strife generated by warring co-owners Tom Hicks and George Gillett and the failure of chief executive Rick Parry to back him effectively in the transfer market.