Liverpool boss Rafa Benitez has said the positive 'clear the air' talks with chief executive Rick Parry, has made the situation clearer and they are looking to improve the squad. He also stressed that he is happy with Xabi Alonso.

Aston Villa midfielder Gareth Barry has been the top target for Benitez all summer, but he didn’t receive sufficient backing from the Reds board to make the £18m move apparently leading to the strain in the working relationship with Parry.

But the 'clear the air' talks have been dubbed as positive by both Benitez and Parry, and they are now looking forward to the remainder of the transfer window.

"The talks were positive, we cannot discuss names but we are now both working to improve our squad," Benitez said.

"We are working really hard, we are moving in the right direction and hopefully we can do something positive in the next few days.

"There was no friction, but some personal problems. Now things are more clear and that is positive. It was a private conversation."

Spain midfielder Alonso has been linked with a move out of Anfield all summer with the likes of Juventus and Arsenal linked. However, the Reds’ valuation of £15m of the player has not been met and as such Benitez has claimed that he is happy to keep the 26-year-old. In the meantime, the Gunners are now eyeing Barry.

Benitez added: "I have had no word about Arsenal wanting Gareth Barry, and that is all I want to say on the subject. Other than that we are working towards improving our squad.

"Likewise there has been nothing more on Xabi Alonso. At the beginning of the summer we were looking at ways of raising money, but now we are happy with Xabi, he is a very good player. The offer we had was not good enough, so why would we want to sell him?"