Rafa can turn to his hit-list as peace breaks out at Anfield (for now)

The Anfield manager is anxious to pursue a list of targets headed by England midfielder Gareth Barry and Borussia Dortmund defender Philipp Degen.

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Benitez sees £12million-rated Aston Villa anchorman Barry as the ideal partner for Javier Mascherano, playing just behind Steven Gerrard, while sources in Germany say 25-year-old Switzerland right back Degen has already reached provisional agreement about a Bosman free transfer when his Dortmund contract runs out at the end of the season.

Wigan winger Antonio Valencia has also been the subject of an enquiry by Benitez, who continues to monitor Blackburn midfielder David Bentley's availability. He has checked the form of Athletic Bilbao left back Fernando Amorebieta and Espanyol left winger Albert Riera.

Though co-owners Tom Hicks and George Gillett remain at loggerheads and have no intention of sitting round the same table, they have come to a working arrangement that will allow Benitez to act.

Benitez said: "It was very positive and we now have a situation where everyone knows what is being said and agrees on the players we want to sign. Everyone knows the names we are looking at and how we should move forward.

"To say you want to sign this player or another, you have to talk with everyone involved, and that is happening now. At the meeting, I told him (Hicks) that we had to work together and he agreed."

Benitez confirmed the breakthrough on Thursday as he reflected on his meeting with Hicks on Wednesday and revealed how Gillett and chief executive Rick Parry had been informed of its contents.

The Liverpool manager had lengthy talks with Hicks and his son Tom Jnr and is convinced the rival factions have finally come up with a formula that will allow him to rise above the infighting and press ahead with his latest recruitment drive.

There were fears the ownership deadlock would prevent his budget demands being sanctioned and cause him to consider his Anfield future. But he was quick to dispel them as he described how a compromise had been struck.

He said: "People have been talking about Hicks or about Gillett but we have a shared responsibility to try to improve the squad for next season, so we must all do our jobs to make it happen.

"I'm happy with the outcome of the meeting, so, yes, I think the arrangement can work. The key is making sure everyone is informed. If that happens, I am sure we can move forward.

"We need to work together, and he (Hicks) agreed with me that we must talk together. If we want to go forward and sign players, we have to all work together.

"We have talked about targets to sign. I do not doubt we will achieve those targets. I have a scouting department that is working and progressing. Now I have told the owners how we need to progress."