Gerard Houllier might yet be sacked despite leading Liverpool into the Champions League qualifying by finishing fourth in the Premiership.
With the club the subject of an investment offer from the Thai prime minister, the Frenchman was involved in talks with chairperson David Moores and chief executive Rick Parry at a secret location on Tuesday, The Independent newspaper reported.
Anfield sources said Houllier could be forced out or pushed upstairs in major changes in the managerial team.
Houllier thought he had saved his job when Liverpool secured fourth place and the possibility of a Champions League place.
But the Liverpool board was understood to be offering the Frenchman the role of director of football — a post he was reluctant to accept.
Liverpool need the investment from Thai prime minister Thaksin Shinawatra to buy top-class players and develop a new stadium that will generate funds to allow the Merseyside club to compete with Arsenal, Chelsea and Manchester United.
Houllier has one year left on his contract, and only a stronger challenge for the Premiership title will satisfy fans unmoved by the fact Houllier has managed Liverpool into the Champions League three times in four seasons and won six trophies.
The money put in by Thailand, plus a potential £20-million from the Champions League and a guaranteed £9-million Premiership prize-money could add up to £100-million coming into the club.
The question is whether the board is confident Houllier is the man to spend it.
Liverpool also face a reported British-record £30-million bid by Chelsea for their captain Steven Gerrard.
Sources at Chelsea think there is a chance Liverpool will accept and that the 23-year-old Gerrard may also be open to offers if the money is right for him.
Talk of a contract worth more than £100 000 a week for Gerrard is being discussed at Chelsea, who made an offer of about £20-million 12 months ago.
Liverpool were also reported to be poised to make a bid for Alan Smith after Leeds turned down two offers, reaching £5,5-million, from Manchester United for the striker.
Leeds value the forward at £10-million.
It is believed Smith and his representatives have held preliminary negotiations with Liverpool.
The move would see Smith link up with Harry Kewell, who left Elland Road last summer. — Sapa-AFP