Liverpool manager Rafael Benitez is confident Argentina midfielder Javier Mascherano will stay at Anfield on a permanent basis.

Mascherano's 18-month loan deal expires at the end of the season and the Reds have yet to tie up a permanent move for the Argentine.

Liverpool have put off talks over all transfers to later this month when American owners Tom Hicks and George Gillett travel to England.

Manchester City are rumoured to be monitoring Mascherano's situation, but Benitez remains confident the South American will remain on Merseyside.

When asked if he was hopeful of signing Mascherano, Benitez said: "Yeah clearly. We are not talking now about this but I have confidence because he wants to stay."

Benitez also revealed Jamie Carragher is fit to face Reading this weekend and that Xabi Alonso, Daniel Agger and Fabio Aurelio are all close to making their returns.

Carragher had been doubtful for the trip to the Madejski Stadium after suffering bruised ribs against Bolton last weekend, but Benitez confirmed the Reds defender has recovered in time to be available for Saturday's game.

"Carra is okay and I think he will be fit for the weekend," added Benitez.

"Alonso is very close, Agger is much better and they could be fit for the next game.

"Fabio is training and Xabi was involved in the warm-up and he is very close."

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