It was recently reported that the 72-time capped Israel international was considering his future after apparently becoming frustrated with his limited opportunities in the Reds' starting XI.

Since joining the Merseyside outfit from West Ham United for around £5 million in 2007, the 28-year-old has started 48 games and made 37 substitute appearances.

However, the versatile midfielder has been a key player for Liverpool in recent weeks and, despite Benitez admitting there may be interest from other clubs in acquiring Benayoun's services, he is optimistic of keeping hold of the former Maccabi Haifa and Racing Santander star.

"I think if he is happy, then he will be okay here," Benitez is quoted as saying by The Independent.

"Yossi now is playing, so I'm sure he is happy. We've had no real approaches for him.

"Now he is playing more games, has more confidence and you can see the quality that he has.

"I have to talk to him [about a new deal] but he is contracted for another two years."

Meanwhile, Benitez has suggested that reports claiming Danish centre-back Daniel Agger has rejected a fresh contract extension offer are not true and instead hinted that negotiations are going well.

"I think that we are closer," Benitez remarked with regard to agreeing terms with Agger.

Ricky Brooks, Goal.com