Rafael Benitez's agent has confirmed ongoing talks are aimed at ending his contract at Inter Milan, according to Sky Sports Italia.
In what amounts to the first solid indication that Benitez has indeed been sacked by the reigning Serie A and European champions, agent Manuel Garcia Quilon was quoted as saying : "We are talking about it, but I cannot say anything more".
Quilon met with Inter vice president Rinaldo Ghelfi and technical director Marco Branca, as well as the club lawyer Angelo Capellini.
"We are neither optimistic nor pessimistic," he added. "We will meet again to talk more."
With Benitez back in Liverpool, speculation has swirled for the last 24 hours that he has been dismissed as Inter coach, but the club have denied the story thus far, with president Massimo Moratti tonight describing the situation as "a bit of a mess" that the club are "trying to understand".
But the 50-year-old looks likely to leave the post after he issued a 'sack me or back me' ultimatum after leading Inter to success in the FIFA Club World Cup on Saturday.
After the weekend 3-0 win over African side TP Mazembe, Benitez called for Moratti to back him in the upcoming transfer market after an otherwise poor start to the season.
The five-time reigning Serie A champions sit seventh in the Serie A table while they only qualified second in their Champions League group behind competition debutants Tottenham.
Inter's season has been undermined by injury, but with a 13-point gap behind leaders and city rivals AC Milan, Benitez has come under intense fire just six months into the job.
Moratti attended a meeting at the club's offices on Tuesday night, following which he claimed that Benitez was still boss and that no contact had been made with potential replacements.
Former AC Milan boss Leonardo has, however, been heavily linked with the post today, although Moratti denied any talks between the two parties had taken place.
Benitez is on holiday with the Italian season now in its winter break, but it is unclear if he will return to Milan.
After the Mazembe match the Spaniard, who signed a two-year-deal at Inter after leaving Liverpool at the end of last season, said: "There are three possibilities for the club.
"One, 100% support for the coach and buy four or five players to build a stronger team with competition among the players to be able to carry on winning matches and trophies.
"Two, carry on like this without a project, without planning, and go ahead with one person to blame, for the whole season.
"The third," he added, "is to speak to my agent to reach an agreement if there is not this support. Simple."
