Liverpool were granted permission to speak to the 62-year-old
two weeks ago and were confident they could announce Hodgson as
Rafael Benitez’s successor on Thursday.
But Fulham owner and chairman Mohamed Al Fayed is digging in his
heels because he does not want Hodgson to go.
Fayed does not believe that £2.5 million – the compensation
clause written into Hodgson’s 12-month rolling contract – is
sufficient for a manager who took the club to their first European
final last month and has been strongly linked with the England
position.
It is understood Liverpool and Fulham have had discussions about
the London club taking a number of young first-team fringe players
from Merseyside to Craven Cottage to force through Hodgson’s switch
rather than pay a flat fee.
Talks have broken down over which players should be included in
the deal and sources say Hodgson might have to resign in order to
take over at Anfield.
Liverpool have decided to act quickly after the Football
Association revealed it has given itself a fortnight to consider
the future of Fabio Capello following England’s humiliating World
Cup exit.
Hodgson was unwilling to commit to Liverpool before England's
make-or-break World Cup group game against Slovenia last week but
has now decided that the challenge of managing a club of such
prestige is too good to miss, despite boardroom instability.
Hodgson has already told the Anfield club that he wants to take
his Fulham assistant Mike Kelly to Liverpool.