Parry stays in the transfer driving seat at Liverpool

Tom Hicks and George Gillett considered firing the Champions Leaguewinning manager before a clear-the-air meeting after Sunday's home defeat by Manchester United led to an uneasy truce.

Benitez wants to call the shots on signing players but chief executive Rick Parry remains in the driving seat on transfer business and retains the full confidence of the club's co-chairmen.

Parry pointed to a strained relationship yesterday when he was less than effusive on being given the chance, at the Champions League draw in Switzerland, to give Benitez his full backing.

Instead, he offered almost a warning shot: "We're fine, and we're focused on what we have to do — it's all about the second half of the season, winning games and getting it right on the pitch."

Parry did confirm there would be money available for signings next month, with Benitez desperate to close a deal for on-loan midfielder Javier Mascherano.

The manager claimed that the vexed question of buying and selling players had not cropped up in the showdown meeting, but said: "We will work together, all of us. Everybody is doing his job."

Liverpool are desperate to beat Portsmouth at Anfield today after two straight League defeats so the 10-point gap to leaders Arsenal does not stretch, but Benitez feels the club are catching up the Gunners in terms of youth development.

The Spaniard has been recruiting heavily, especially in his home country, and said: "They are 16 to 18 but I'm sure that in two or three years most of them will be ready for the first team. That means saving big money."

The big question is whether Benitez, who says he neither asked about nor was offered a contract extension by Gillett and Hicks, will be around to see through that plan.