The Mirror note that the former Liverpool and Real Madrid coach will meet with club owner Mike Ashley this week as the Magpies look to tie the Spaniard down to a new deal.
While Benitez oversaw Newcastle’s relegation to the Championship, the experienced coach became a popular figure among the club’s fans and bowed out with a bang after defeating Tottenham Hotspur 5-1 at St James’ Park on the final day of the season.
Benitez is already understood to have agreed personal terms with the club, according to the tabloid, and has agreed on a three-year deal, with the only sticking point being a new management structure at the club which will allow the Champions League-winning manager control over transfers.
Benitez began the 2015-16 campaign at Real Madird, but was relieved of his duties during the season, and took over at Newcastle following a period out of work.
The Magpies ended the campaign in 18th, having lost 19, drawn 10 and won just nine of their matches this season.