January sales key to the future of Benitez

• More Premier League news club by club

Benitez emerged from the rubble of Sunday's devastating home defeat by Manchester United declaring that Liverpool's faltering challenge for the Barclays Premier League title should be judged over the next month.

But while the club party line is that the "misunderstandings" between Benitez and co-chairmen Tom Hicks and George Gillett have been "clarified", Liverpool's impending transfer activity will be the true test.

Benitez, who attempts to steer his team into the Carling Cup semi-finals past Chelsea at Stamford Bridge tonight, has pinpointed January as the make-or-break month after the Christmas fixtures.

Despite the apparently amicable nature of his clear-the-air meeting with Hicks and Gillett, there have been no firm promises of funds to reinforce Benitez's drive for glory during the transfer window.

Chief executive Rick Parry's confirmation yesterday that there needs to be a major re-think on the spiralling cost of a new stadium also raised fears of an enforced belt tightening in signing players.

The grand plan envisaged in Texas to outshine Old Trafford will have to be scaled back, although Parry insisted: "We remain confident we can achieve our aim and still produce a very impressive solution."

But it is the diktat from Dallas that he should concentrate on his coaching while Parry addresses recruitment that gnaws at Benitez — some would say with good reason. Benitez denies Liverpool's defeat by United, leaving them 10 points adrift of leaders Arsenal, has ended their title hopes and targets Saturday's visit by Portsmouth to kick-start a bold revival.

He said: "It's too early. We have a game in hand and have four League games in a short time over Christmas. We know we are going into a crucial stage of the season.

"We have to keep the players' confidence high and the same mentality, look to play as well as we can and see what the situation is at the end of next month."

Benitez's morale has been hit by his failure to convince the Americans of the need to move quickly for the players he targets and he is about to see another catch slip off the Anfield hook.

Liverpool's manager had planned to raid his native Spain again for Sevilla's highly rated Jose Manuel Casado, 21, who can play at left wing as well as left back, both problem positions for Benitez.

Casado, signed from Barcelona, has impressed in Spain's second division where he has slipped under the general scouting radar and was set to be a free transfer capture for Anfield.

But Benitez was unable to move swiftly enough before his interest leaked. Sevilla are well into their negotiations to tie Casado, who has only one senior start to his name, to a new two-year contract.

Such disappointments — and the ongoing saga of on-loan midfielder Javier Mascherano, anxious to sign but growing weary at the wait — have helped build Benitez's frustration to an alarming degree.

Benitez's all-consuming passion to bring the title to a club that does not deem a Champions League trophy sufficient return has led to changes in the manager's demeanour, say insiders.

Beneath the calm exterior in public, Benitez is feeling the stress and strain and can be a testy boss to deal with. In demanding ever more from himself, he searches for more from those around him.

His frustration with Hicks and Gillett boiled over with the famous "I'm just focusing on coaching the team" mantra and his ostentatious tracksuit rather than a smart suit for the next game at Newcastle.

Having failed to beat Arsenal, Chelsea and now Manchester United at home, Benitez sees a less demanding fixture list — Portsmouth and Manchester City aside — as the launch to a spring offensive.

Veteran defender Sami Hyypia said: "Losing on Sunday is not the end of the world. Ten points is quite a lot, but I don't believe it is a major obstacle to clear and it is certainly not impossible."

Liverpool have midfielder Xabi Alonso back after the Spaniard broke a metatarsal in October and their Cup record against Chelsea holds hope of a victory, yet Benitez still eyes the bigger prize.

While Benitez is no quitter, he is a man of principle, and in setting his target for the next six weeks he sends out an underlying message that what happens next will also have a bearing on his own future.

There would be no shortage of offers in Spain, where his superb stint at Valencia is legendary. Benitez, a proud man, will not forget that the Americans considered sacking him for his cheek. Handing them a league title with one hand and his resignation with the other would have a certain style.