Sacked Real Madrid coach Manuel Pellegrini has held a round of talks with Liverpool.

The Guardian says Pellegrini has held talks with Kenny Dalglish over the managerial vacancy at Liverpool despite Roy Hodgson remaining the club's preferred candidate to succeed Rafael Benítez at Anfield.

Pellegrini was dismissed by Real last month for failing to deliver in the Champions League or beat Barcelona to the title, although he did produce a club record 96 points during his one and only season at the Bernabéu.

The Chilean's agent last night denied reports that the 56-year-old met Dalglish at Heathrow airport but Pellegrini was in England yesterday and did meet the Liverpool legend who is overseeing the search for Benítez's replacement alongside the managing director, Christian Purslow.

Dalglish has told the Liverpool board that he would like the job in the absence of any superior candidates.