Lee was instantly earmarked as a potential replacement for coach Alex Miller, who has left the club to take up a management position in Japan.

Initially Benitez would say only, "we have several names under consideration", but he pointedly refused to rule out Lee's return to Anfield.

But sources at the club claim that Lee is Benitez's first-choice for the post and co-owners George Gillett and Tom Hicks have been asked for their approval.

Benitez has not had an assistant since Pako Ayesteran left the club under a cloud earlier in the season - he is still on 'gardening leave'.

Miller was officially a coach rather than assistant, but Benitez now seems certain to appoint a replacement for the more senior role.

Lee's appointment would crucially give Benitez a club legend and Merseyside man at his side. A criticism of the manager's backroom staff has always been that it has too many Spanish coaches without local knowledge.

Lee was sacked by Bolton earlier in the season after taking over from Sam Allardyce as manager, having previously worked as a coach under former Liverpool boss Gerard Houllier at Anfield.



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