The Spaniard will now be in control at Anfield - and control is exactly the right word - until 2014, having finally signed his new deal.

He had little more than a year of his current contract to run, and negotiations with joint owners George Gillett and Tom Hicks had been going on since well before Christmas.

It is believed that there had been eight different drafts of the contract on offer, with Benitez sticking out for the near absolute control of the Merseysiders he wanted.

And it is no surprise that he has finally put pen to paper within a couple of weeks of chief executive Rick Parry's announcement that he would be leaving the club in the summer.

The two have had a sometimes strained relationship, with Benitez angry that many of his transfer negotiations seemed subject to the chief executive's opinion.

He had criticised the slowness of some deals, in which players he wanted were lost, with the key issue being the failure to sign Gareth Barry last summer, when the club refused to match Aston Villa's reported £18million asking price.

At first Hicks and Gillett rejected Benitez's demands, and it is believed they even asked Villa's American owner Randy Learner for advice and confirmation that the sort of deal Benitez wanted was similar to Martin O'Neill's.

Benitez did not want Parry overseeing his decisions, but may well have to report to the board on some issues of transfer policy.

But just days after seeing his side beat Real Madrid in the Champions League and Manchester United in the Barclays Premier League, Benitez seems to have got his way.

Only last week Benitez let it be known that United tried desperately to sign the Brazilian youngster Lucas, with the Liverpool manager insisting that Parry signed a fax confirming the deal while an agent working for United was in the air flying to Brazil to do the deal himself.

Benitez has continually been linked with Real Madrid, who will probably have a vacancy in the summer when Juande Ramos' short-term contract ends.

Benitez told the Liverpool website: "My heart is with Liverpool, so I'm delighted to sign this new deal.

"I love the club, the fans and the city and with a club like this and supporters like this, I could never say no to staying.

"I always made it clear I wanted to be here for a long time and when I complete my new contract it will mean I have spent over a decade in Liverpool.

"The club is greatly respected around the world due to its incredible history and tremendous heritage. It is my aim to uphold those values and help create a new chapter in our history.

"Throughout this process, I would like to thank the owners for their hard work in finalising the deal. All of us at the club want the same thing, which is to be successful by winning major trophies."

Hicks said: "It is wonderful news that Rafa has made a long-term commitment to the club. Since he became manager in 2004, he has been responsible for the great progress we have made.

"I know he will continue to build on his achievements as he has a tremendous hunger and desire to bring more success to the club - success our fans and everyone connected with the club deserves."

Gillett added: "With Rafa continuing to manage the team, we can look forward to more great football and success on the pitch.

"He has special abilities and qualities which are admired here at the club and around the world.

"Coming after our excellent wins over Real Madrid and Manchester United, this gives us great momentum going into the final stages of the season."