Rafael Benitez is set to be sacked by Liverpool with an official announcement due on Thursday. The Spaniard told the club’s chairman Martin Broughton that he was unable to continue in his job after the official made it clear to him that there was no money in the kitty for new players.

After three rounds of talks with Broughton, Benitez could not get the answers he wanted and has decided to end his six year association with Anfield. Both parties are now engaged in discussions on the severance deal to be paid to the Spaniard which is likely to be about £3 million with Benitez agreeing to a compromise as a farewell gift to the club given the financial plight Liverpool find themselves in.

Broughton was rumoured to be quick to give Benitez the sack after the Liverpool boss made it clear his job of restoring the club to former glories would be difficult without money to spend this summer. The former Valencia boss had his hopes raised after co-owner Tom Hicks came out publicly last week to declare that he would be given “significant” transfer funds to overhaul the team.

But Benitez has discovered that nothing is ever quite what it seems at Anfield nowadays under the Americans and has decided that it would be best for both parties to part and perhaps seek greener pastures elsewhere, with Inter Milan now reportedly set to swoop for his services.

Benitez could have left earlier in the summer after Juventus were reportedly on the verge of signing him as their new manager, but he could not agree on compensation with the Anfield hierarachy, said to be about £16 million.

With both Liverpool and Benitez’s agent refusing to make any formal comments nor denials about the matter, it would appear that discussion are entering the final stages and should be made public soon.

How the news would be greeted by Liverpool’s star players like Steven Gerrard and Fernando Torres is uncertain considering both players have confided privately that they were keen to leave the club if the Spaniard stayed. But with Benitez leaving and the club having a lack of quality candidates and new players coming – nor perhaps the financial funds to do so – they could leave anyway.

Liverpool could only finish seventh in the Premier League last season and without Champions League football next season, and now the departure of Benitez, the future is increasingly bleak for the once mighty club.

Benitez could now be set to join the newly crowned European champions Inter Milan after the Serie A club saw their top candidate Fabio Capello confirm his stay with England for another two years. Club president Massimo Moratti is said to be keen on the Spaniard despite former coach Jose Mourinho having advised him against it previously.

Tags: English Premier League, football managers, Liverpool, Rafael Benitez, Rafael Benitez sack