The People says Benitez and Texan businessman Hicks have buried the hatchet and the Spaniard will shortly be offered a new deal to stay at Anfield beyond his current deal, which ends in 2010.

Negotiations will take place alongside Hicks' own bid to secure his long-term future as Liverpool owner. He is trying to raise £140million to buy out his partner George Gillett.

The £18m permanent signing of Argentinian Javier Mascherano, talks with Peter Crouch about a new deal and plans for a new one-year deal for veteran defender Sami Hyypia all back up a thaw in relations between Hicks and Benitez.