Liverpool manager Rafael Benitez has rejected the terms of the contract which was offered to him this week, according to a report.
The Spaniard has refused to commit to the deal because of a disagreement with owners George Gillett and Tim Hicks over his level of control.
Benitez told the Liverpool Echo newspaper: “The owners feel that the manager’s decisions need to be subject to the chief executive.
“But I know that I am subject to results and to our fans and they are the best judges I will ever have.”