The Nigeria international spent the past six months on loan at QPR, and is ready to leave the Rossoneri on a permanent basis this summer if the Portuguese giants make an approach
The defender joined the Rossoneri from Olympique de Marseille ahead of the 2011-12 campaign, but failed to make an impact at the San Siro side and was farmed out on loan to QPR midway through the season.
The 27-year-old will return to Milan this summer, but is unlikely to stay at the Serie A giants as he appears to be surplus to requirements for the Rossoneri.
"If Benfica are considering signing me for the next season, then I can only thank them for showing an interest in me," Taiwo was quoted as saying by O Jogo.
"My plan is to develop and improve myself every year and next season it will also be like that. Benfica would be a good club for me to develop and improve myself."
The left-back has a contract with Milan until the summer of 2014.