Isco's future at the Santiago Bernabeu had been in doubt, after the Spain international lost his place in the Blancos starting line-up during the second half of last season when Luka Modric and James Rodriguez returned from injury.
Though the 23-year-old is well settled in the Spanish capital, he was concerned about the possible arrival of another midfielder this summer, prompting talk of summer reunion with his former boss at Malaga, Manuel Pellegrini, who is now in charge of Manchester City.
However, Isco's fears have now been soothed by Benitez, who called the player shortly after being named as Carlo Ancelotti's successor and told him that he has an important role to play in Madrid's new sporting project.
As a result, Isco has dismissed all thoughts of leaving the Blancos and is now looking forward to the 2015-16 campaign with renewed vigour.
The Valencia youth academy product joined Madrid from Malaga in the summer of 2013 for €30 million, penning a five-year contract with the capital club.
Isco has made 106 appearances in all competitions over the past two seasons, racking up 17 goals and 23 assists in the process.