Newcastle set about renewing the ex-Madrid coach's contract once the Premier League was over. The meetings had gone well and the agreement was on its way.
Benitez's only demands were that the club made financial efforts to strengthen the squad for next season.
The Magpies are keen to keep Benitez on, and had communicated that desire to the Spaniard.
The departure of Rudi Garcia left a void in Marseille, who looked to fill it with the ex Valencia and Madrid coach, among others.
Ranieri's days at Roma are numbered. Benitez is also on their agenda, but his willingness to continue at Newcastle might have scared them off.