Fernando Torres and Steven Gerrard have handed Liverpool a major boost and have been passed fit to play against Manchester United at Anfield on Saturday.

The key duo came through a training session on Friday in a bid to prove their fitness for the Premier League showdown.

• Fergie confirms Ronaldo is fit

"They are both much better," confirmed manager Rafa Benitez.

"They came through a full training session this morning. It wasn't a very hard session, but they will both be in the squad.

Chelsea look set to be without Michael Essien for the rest of the year after it was confirmed the midfielder would need surgery on a knee injury.

The 25-year-old suffered the problem while on international duty and was stretched off in the game between Ghana and Libya on Friday night.

He had missed the start of Chelsea's Premier League season because of injury and had only recovered last week.

A club statement read: "Michael has ruptured his anterior cruciate ligament and will undergo an operation as soon as the majority of the swelling has subsided. We expect this to happen in a week's time.

Kevin Keegan has resigned as Newcastle manager, ending his second stint in charge of the Premier League club after only seven months.

The news ends three days of intense speculation at St James' Park with Keegan's relationship with the club's hierarchy understood to have broken down irreparably over the club's transfer policy.

Keegan said in a statement that he "had been left with no choice."

Keegan had been retired from coaching at the professional level until Newcastle persuaded him to return last January. But he grew frustrated at his lack of influence over transfers, losing James Milner to Aston Villa last week and failing to secure several other targets.

"I've been working desperately hard to find a way forward with the directors, but sadly that has not proved possible," the 57-year-old Keegan said in a statement.

"It's my opinion that a manager must have the right to manage and that clubs should not impose upon any manager any player that he does not want."

"It remains my fervent wish to see Newcastle United do well in the future. I feel incredibly sorry for the players, staff and most importantly the supporters. I have been left with no choice other than to leave."

New Manchester City owner Dr Sulaiman Al Fahim is considering an audacious £134 million bid for Cristiano Ronaldo in the January transfer window.

Al Fahim, who through the Abu Dhabi United Group took control of City yesterday, after buying out Thaksin Shinawatra, has already broken the British transfer record following the £32.5m capture of Robinho from Real Madrid.

With money no object, City have been linked with a host of players - including Kaka, Lionel Messi, Steven Gerrard, Cesc Fabregas and Fernando Torres.

Indeed, it is believed a bid for Torres was made yesterday before the transfer window closed, but Liverpool rejected it out of hand.

However, Al Fahim's top target is Ronaldo, who was the subject of concerted interest from Real Madrid this summer.