Rafael Benitez has launched a passionate defence of his handling of Liverpool skipper Steven Gerrard and his own managerial record at Anfield.

The Spanish coach has been criticised for his decision to play the 26-year-old England midfielder on the right rather than in the centre of midfield and there are noises coming from the Gerrard camp that he is not happy with the situation or the role he is being asked to play.

Benitez said: "I am as happy as Steve McClaren with Steven Gerrard and where he is playing. Steve scored 23 goals last season, playing on the right side of midfield. He is not being played as a right winger. Are you seeing him making crosses from the byeline? No.

"He is always getting the ball and coming inside, that is what the role is. And he had the best season of his career playing that way. England can see that and that is where they are playing him too. Yes, Stevie can play well in central midfield, he could play well anywhere.

"But we have more balance with Momo Sissoko and Xabi Alonso there, and with Stevie wider. That works for our team. He goes inside and scores 23 goals, that surely is a good role for him.

"I have talked to Stevie, and he is happy. He is the captain and must be an example for the rest and he knows that the most important thing is the club, the team, the supporters and after that, the players."

Gerrard is set to be one of Liverpool's senior stars who are rested for the Carling Cup third-round clash with Reading at Anfield tomorrow night.

Benitez is likely to blood youngsters Gabriel Paletta, Jamie Smith, Danny Guthrie and Lee Peltier in his squad, while England Under-19 goalkeeper David Martin will be on the bench because Jerzy Dudek is suspended.

Benitez has also had to handle the furious fall-out from his side's defeat at Manchester United which leaves the Reds 11 points behind the Premiership leaders.

He said: "We knew (the game) was important and we were all obviously disappointed. But we cannot continue to think like that, we have to look to the future.

"But do not forget that last season at one stage we were 24 points behind Chelsea but we finished with 82, a club record, and finished third.

"We understand how the fans felt, when you are a top club like Liverpool then you know what the expectation is and the fact that you must win every time. It is worse because it was against Manchester United, but you must learn that if you want to change things you cannot allow yourselves to have your heads down for long.

"You cannot move on if you are always blaming people, forget that. Only winning can change things and avoid a mental problem taking hold."

And on his record and progress at Anfield, Benitez said: "People forget. When I arrived here we lost at Burnley in the FA Cup and we were told we were the worst Liverpool side in 40 years. We won the Champions League that season and reached the Carling Cup final. That wasn't bad, surely.

"The second season we improved, and we were much, much closer to Chelsea and we won many games in a row at the end of the season. And then we won the FA Cup, the European Super Cup and managed 33 clean sheets. That wasn't bad either.

"This season we have won the Community Shield, and you must have won something big to be in that. So in three seasons we have been in six finals and won four. Not bad, no?"