The Kop boss has reached breaking point and accepts it is now
virtually impossible to take the team forward.
But off the field, the club has lined up a spectacular deal with
the Rhone Group - reported to be worth £3billion - to dilute the
controversial ownership of Tom Hicks and George Gillett.
The New York-based private equity firm have begun due diligence
with a view to buying around a 40 per cent stake in the club.
The £100m deal would see controlling interest pass to
billionaire financiers Robert Agostinelli and Steven Langman.
If the deal goes through it would repay the club's Royal Bank of
Scotland debt and enable work to begin on the £350m new
stadium.
There would also be considerable investment in the transfer
market - although it is unlikely Benitez will be the man to spend
it.
He has reached the stage where he believes it is time to quit
Anfield, with Real Madrid a possible destination in the summer.
That would then allow potential new owners to install their own
man at the Liverpool helm.
Managing director Christian Purslow has been scouring the globe
to meet a summer deadline to repay £100m of a £237m debt to
RBS.
There is still interest from India, Saudi Arabia and Kuwait but
the Rhone Group are seen as the most viable proposition in the
market.
Founded by Agostinelli and Langman in 1996, the Rhone Group
describes itself as 'one of the world's leading mid-market private
equity firms'.
They specialise in mergers, acquisitions and leveraged buy-outs
and have offices in New York, London and Paris.
The new Americans would take a controlling interest, leaving
Hicks and Gillett with around a 30 per cent stake each.
The Rhone Group's co- founder Agostinelli, 56, is an
Italian-American executive based in Paris who lists former US
President George W Bush and current French President Nicolas
Sarkozy amongst his friends. His high-flying wife, Mathilda, runs
the French office of Prada and was a witness at Sarkozy's secret
wedding to Carla Bruni.
Agnostinelli and Langman, 48, have worked together at several
top Wall St firms before setting up the Rhone Group 14 years
ago.