The 59-year-old safely guided the Magpies to a mid-table finish in 2018/19, but his current contract at St James Park expires at the end of the current campaign. Manager and club have been in discussions for several months, but remain at loggerheads.
Benitez met with the Newcastle board last week, and 90min has learned that the former Liverpool boss has informed the club he wants a guarantee of a £100m budget to take the club forward written into his deal; this excluding money raised through player sales, and not inclusive of player wages.
And although the club are keen to extend Benitezs stay, there is an unwillingness to bow to his demands, thus the delay in any confirmation. It remains to be seen whether the club will give Benitez what he wants - it remains unlikely - or whether Benitez himself will be given enough assurances to re-sign.
Celtic are interested in bringing Benitez to Scotland, while Ligue 1 giants Marseille are interested in talking to the Spaniard too after parting company with Rudi Garcia. Roma, also on the hunt for a new manager, are known admirers too.
Benitez has been lauded for his accomplishments since taking charge three years ago, leading the club to the Championship title in his first full season of the club - just months after he was unable to prevent them sliding to a second relegation in the space of seven seasons.
He has become increasingly frustrated at the clubs lack of activity in the transfer market, though, with Newcastles lack of financial firepower meaning they have been unable to progress on the pitch as quickly as Benitez would like.
Newcastle did break their transfer record for the first time in 14 years when they signed Miguel Almiron for £21m in January, but only spent £43.5m over the course of the season - the exact amount they received through player sales that included Aleksandar Mitrovic, who joined Fulham for £22m last summer.
Consequently, a change of approach must be undertaken to satisfy Benitez, but the current impasse leaves his future at the club under a huge cloud.