Despite speculation of a resignation, Liverpool boss Rafa Benitez's minders were in talks yesterday over his new contract.
The Daily Mail says talks between Liverpool officials and Benitez's advisers were resumed yesterday, with further negotiations planned to try to iron out any differences that still exist.
However, while efforts are being stepped up to try to find a compromise, Manchester City continue to monitor developments and are understood to have drawn up a lucrative package to entice Benitez away should he be denied the contract terms he is seeking.