Rafael Benitez hopes to have finally settled his differences with Liverpool's co-owners Tom Hicks and George Gillett. Benitez held clear-the-air talks with Hicks and Gillett after Sunday's defeat against Manchester United at Anfield in a bid to sort out recent disagreements over transfer policy.

"We needed to clarify the situation and it was a very positive meeting," Benitez said. "The conversation was very fluid because we were face to face, whereas it's more difficult over the phone or by e-mail. My English isn't always the best but having the chance to talk to them slowly and with time allowed us to analyse small problems. Now we can move forward."

Rick Parry, the Liverpool chief executive, has categorically denied newspaper speculation suggesting that the co-owners had placed a January transfer embargo on Benitez. "I can say that this is absolute rubbish," he said.

Benitez remains confident of completing the purchase of £17 million Javier Mascherano at the end of the season, and he is hopeful on two other deals when the transfer window opens next month. Peter Crouch and Momo Sissoko have both been linked with moves away from Liverpool, while Benitez is believed to be eyeing Kakha Kaladze, the AC Milan defender.

Meanwhile, the Spaniard received a boost after he was shortlisted for the Uefa Coach of the Year award for leading Liverpool to their second Champions League final in three seasons back in May.

Benitez will battle it out for the award with Juande Ramos, Sir Alex Ferguson, the Manchester United manager, Fabio Capello and AC Milan boss Carlo Ancelotti.