Liverpool manager Rafa Benitez has been left frustrated after Argentinian winger Sebastian Leto was refused a work permit for the new season.

The British Government has turned down Leto's application and the 21-year-old is now set to leave Anfield on loan, with Olympiakos a likely destination.

Leto made four appearances for the Reds last term while on an Italian passport but that was later revoked by the Italian Government, which is now subject to an appeal.

Liverpool, therefore, applied for a work permit with Benitez insisting he will select Leto, who has failed to impress since arriving from Atletico Lanus in July 2007, on a more regular basis in the new campaign.

But having been refused, Benitez believes the process for awarding work permits needs to be addressed, telling the Daily Express: "The system needs to change, clearly.

"I cannot understand how an Argentine player who has been in pre-selection for the Olympic squad and has played in the Champions League and at a club like Liverpool is not good enough.

"Now we need to find a solution for him and find a good team. Maybe in the future when he is playing Champions League someone will say, 'we made a mistake'."

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