Benitez is now working without an assistant manager

Ayestaran, who has been linked with a return to Spain, remains contracted to the Reds until 30 June 2008, meaning he cannot take up another job until then.

Chief executive Rick Parry told the club website: "After talks between Pako and Rafael, it would be in everyone's best interests if Pako leaves his post.

"Pako, however, will remain under contract to us until next summer."

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Parry added: "The club want to thank Pako for his hard work and contribution to our success over the past three years."