Au revoir, Gerard

Gerard Houllier's six-year reign as Liverpool manager is expected to be officially ended in the next 24 hours.

Valencia coach Rafael Benitez and Alan Curbishley have emerged as the favourites to succeed the Frenchman, who reportedly spent yesterday confirming the terms of his departure with Anfield chairman David Moores.

It is expected that the club will announce a parting by "mutual consent" to prevent Houllier being the first Liverpool manager to be sacked for over 50 years.

It was initially thought that having secured fourth place and Champions League qualification at the end of a difficult season, Houllier would be allowed to see out the final year of his contract. But it has been decided to change things now rather than risk another season of relative mediocrity.

The Frenchman can expect a £1million pay-off although he may also have to sign a confidentiality agreement to prevent him criticising the club. It is reported that the Anfield hierarchy have spent the past 72 hours sounding out a shortlist of candidates to succeed him.

There is still interest in Jose Mourinho, who has spoken in the past of managing Liverpool, but the board feel it is too late to secure the Porto coach as he is still considered the front-runner for the Chelsea job.

Benitez, who has taken Valencia to the Spanish title and the UEFA Cup this season, indicated some months ago he would love the Anfield job and is known to be ready for a new challenge.

He was quoted as saying that he had "heard about Liverpool's interest", while his agent Manuel Garcia Quilon said: "Nobody has been in contact with him." If Benitez cannot be lured to the club, they will look closer to home, possibly to Curbishley, whose contract at Charlton is believed to include an escape clause.

Gordon Strachan, Steve McClaren and Martin O'Neill have also been mentioned in connection with the job over the weekend, but none is thought to be among the favourites.

The appointment of a new manager will be only the start of a major overhaul in the structure of the Merseyside club.

There are suggestions David Moores will take a step back and allow a nominated representative - possibly Kenny Dalglish - to act for him.

Moores will also hold talks today with Thai negotiators representing Prime Minister Thaksin Shinawatra, who have flown to England in a bid to strike a deal with Liverpool - or start looking at other clubs to invest in.

Negotiations over the £60m bid have stalled over the level of Thai representation on the board.