Feel awkward using my current manager as a reference

[Jamin2112]

I'm working a contract job and was offered a salaried job at the company but turned it down after holding on to the offer until they put pressure on me to make a decision. I think they knew that I was holding on to it as a backup plan while trying to get an offer somewhere else. Well, I pretty much do have an offer somewhere else, but that somewhere else has to first do a background check and wants professional references. I would feel awkward using my manager now that I just turned down a job that they generously offered me.

What should I do?

 

[rootone]

Yes awkward.
It does sounds like you do have a preference to get a salaried job instead of continuing to do contract work.
If that is the case it's down to which of the two company's you think will offer the best career development.
Probably best to tell your present manager that yes you ARE interested in the salaried job offer, but quite reasonably you will be considering all your options.
That way he/she won't be surprised to get a request for a reference, and maybe might even up the terms of the offer they made to you.
I very much doubt that the manager would give a poor reference out of spite, that would be highly unprofessional.