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• Fulham assistant manager could also head to Anfield
• Yossi Benayoun close to completing Chelsea move

Liverpool expect to finalise the appointment of Roy Hodgson as the club’s new manager following his return from South Africa today. The Fulham manager, who has been commenting at the World Cup for the BBC, has been the frontrunner for the Liverpool job since Rafael Benítez left Anfield this month and could be confirmed as the Spaniard’s successor within days.

Liverpool have considered several candidates for the position, including the former Real Madrid and Villarreal coach Manuel Pellegrini, but Kenny Dalglish, the club legend asked to conduct the managerial search alongside the managing director, Christian Purslow, is not in the running.

Anfield officials are confident of securing a deal with Hodgson now that he has returned from South Africa and with his prospects of being offered the chance to succeed Fabio Capello as England manager diminished by the national team’s World Cup victory over Slovenia.

It is understood the make-up of Hodgson’s backroom staff is one of the issues to be resolved prior to his appointment, with the 62-year-old keen to bring the Fulham assistant manager, Mike Kelly, with him to Merseyside.

While Liverpool await the arrival of their next manager, Yossi Benayoun is close to leaving Anfield for Chelsea after the two clubs agreed a £5m fee for the Israel international.

LiverpoolRoy HodgsonAndy Hunterguardian.co.uk

• Kenny Dalglish meets former Real Madrid coach
• Roy Hodgson remains favourite to take over at Anfield

Manuel Pellegrini, the former Real Madrid coach, has held talks with Kenny Dalglish over the managerial vacancy at Liverpool despite Roy Hodgson remaining the club’s preferred candidate to succeed Rafael Benítez at Anfield.

Pellegrini was dismissed by Real last month for failing to deliver in the Champions League or beat Barcelona to the title, although he did produce a club record 96 points during his one and only season at the Bernabéu. The Chilean’s agent last night denied reports that the 56-year-old met Dalglish at Heathrow airport but Pellegrini was in England yesterday and did meet the Liverpool legend who is overseeing the search for Benítez’s replacement alongside the managing director, Christian Purslow. Dalglish has told the Liverpool board that he would like the job in the absence of any superior candidates.

Negotiations with Pellegrini, who worked with the Liverpool goalkeeperJosé Reina during a successful five-year spell in charge of Villarreal, reveal that Anfield officials are working through a short-list of candidates to succeed Benítez, although it is understood Hodgson remains top of that list. The Fulham manager has yet to receive an official approach from Liverpool and last night reaffirmed his contentment at Craven Cottage from South Africa, where he is commentating for the BBC.

Asked about Liverpool’s interest, Hodgson said: “I’m happy at Fulham. It is all speculation and I can’t enlighten you. I don’t know any more than you do.” An official move for Hodgson from Liverpool is anticipated next week, however.

LiverpoolRoy HodgsonKenny DalglishAndy Hunterguardian.co.uk

• Spaniard leaves Anfield ‘by mutual consent’ after six years
• Kenny Dalglish to assist with search for new manager

Liverpool have confirmed the departure of their manager Rafael Benítez. The club released a statement this afternoon saying the Spaniard is to leave the club “by mutual consent”.

Kenny Dalglish is to assist the Liverpool managing director, Christian Purslow, in the search for a replacement. Roy Hodgson, Martin O’Neill and Louis van Gaal are among the bookmakers early favourites for the post.

“It is very sad for me to announce that I will no longer be manager of Liverpool FC,” Benítez said. “I would like to thank all of the staff and players for their efforts.

“I’ll always keep in my heart the good times I’ve had here, the strong and loyal support of the fans in the tough times and the love from Liverpool. I have no words to thank you enough for all these years and I am very proud to say that I was your manager.”

• Today in Sport: Have your say on Benítez’s Anfield exit
• Gallery: The highs and lows of Rafael Benítez’s tenure
• In pictures: Who could be next for Liverpool?
• From Bellamy to Kromkamp: Liverpool’s transfer failures

Benítez joined the club from Valencia in 2004 and guided the side to the Champions League title in his first season in charge. The FA Cup followed in 2006, but he was unable to transform his side’s cup form into Premier League success.

Despite regular top-four finishes, the closest Liverpool came to the title during his reign was in 2008-09, when they were runners-up to Manchester United. Last season Benítez’s side missed out on the Champions League qualifying spots, finishing the season in seventh.

Despite those shortcomings in the league, Benítez is admired by the Internazionale president, Massimo Moratti, who is searching for a replacement for José Mourinho at San Siro.

Liverpool statement in full

Liverpool FC today confirmed that Rafael Benitez is to leave the club by mutual consent.

Mr Benitez relinquishes his position as team manager after six years and the Board of Directors would like to place on record their grateful thanks for his services and wish him all the best in his future career.

The Board has now asked Managing Director Christian Purslow, with the assistance of Club Ambassador Kenny Dalglish, to begin a formal search to identify and assess potential candidates for the managerial position.

No timescale has been placed on the process and Liverpool FC will make no further statement until a new manager is appointed.

LFC Chairman Martin Broughton said: “Rafa will forever be part of Liverpool folklore after bringing home the Champions League following the epic final in Istanbul but after a disappointing season both parties felt a fresh start would be best for all concerned.”

Rafael Benitez said: “It is very sad for me to announce that I will no longer be manager of Liverpool FC. I would like to thank all of the staff and players for their efforts.

“I’ll always keep in my heart the good times I’ve had here, the strong and loyal support of the fans in the tough times and the love from Liverpool. I have no words to thank you enough for all these years and I am very proud to say that I was your manager.

“Thank you so much once more and always remember: You’ll never walk alone.”

Rafael BenítezLiverpoolJohn Ashdownguardian.co.uk