Liverpool money crisis deepens as American owners miss deadline over £220m debt

But off the field, the failure so far of efforts by American owners George Gillett jnr and Tom Hicks to refinance the £220million they borrowed from the Royal Bank of Scotland to fund their takeover of the club 10 months ago is pushing Liverpool towards an unprecedented period of uncertainty.

The American owners have missed a selfimposed deadline to strike a deal with RBS before Christmas.

The bank will not allow the club to go under but the problems facing Gillett and Hicks could hasten their departure — and see Dubai International Capital, the state-backed investment firm who were in pole position to buy Liverpool before the arrival of the Americans, back in the market as potential new owners.

Adding to the intrigue over the club's future, it is understood that former Germany World Cup coach Jurgen Klinsmann has been sounded out as a replacement for Benitez.

It is believed that contact between Klinsmann and the club has taken place at a high level and the German is thought to be interested in taking over at Anfield.

Despite assurances that there is money to spend in the January window, Benitez's public rift with Hicks and Gillett over the club's transfer policy may be beyond repair.

Boardroom backing for Benitez has been lukewarm in the wake of reports linking Klinsmann with the job.

Sources close to the ex- Tottenham striker and former Footballer of the Year believe he is eager to end his self-imposed exile from football and take a top manager's job.

A move for Klinsmann could proceed regardless of whether Hicks and Gillett remain the owners of Liverpool, but the crisis in their refinancing plans threatens to undermine the club both on and off the pitch.

Despite revelations last week that talks with RBS and American bank Wachovia over a new £350m loan had stalled, Kekst, the American owners' New York-based PR firm, continued to brief that a deal would be done before Christmas.

But Friday, the last day for business before the festive break, passed without announcement and although it is understood that negotiations will continue, banking sources on this side of Atlantic believe an impasse has been reached.

Hicks and Gillett have until February to refinance the £220m they borrowed from RBS to fund their takeover, plus the interest which has accrued in the past year, the credit notes used to buy Torres and Ryan Babel, and £60m to cover initial work on a new stadium.

If they are unable to strike a deal before the deadline and unable to persuade RBS to take up the option of extending the existing loan for another year, the bank stand to become the de facto owners of the club.