The Reds have £351million in debts and can not afford to pay Benitez the £16million he would be due if the club decided to sack him.
The Reds believes Benitez was on his way to Juventus, but the Italian giants refused to meet the Spaniard’s demands, according to the Sunday Mirror.
Liverpool co-owners George Gillett and Tom Hicks will not sanction the pay-off as they are not prepared to increase the club’s debts even further.
