The Welshman has impressed since Benitez arrived at the Premier League club.
The left-back's current contract expires at the end of next season, the Shields Gazette claims, but he is ready to put pen to paper regarding an extension.
And Benitez believes that it will be a good move for both the defender and the Magpies if the 24-year-old does officially decide to stay where he is.
"I am really pleased because he [Dummett] is doing well and is a good professional," he told the Shields Gazette.
"If he has the extension, it is good for him and good for the club."
While Dummett may not perhaps have quite the same level of reputation as the likes of Moussa Sissoko, Jonjo Shelvey and Andros Townsend, the fact that the defender has been one of the club's most consistent performers this season and is set to agree a new deal arguably sends a great message to the squad and the supporters.
It suggests that the Wales international has the belief that Newcastle will drag themselves away from danger in the Premier League. Though they currently sit outside the bottom three, their position is precarious so Dummett's mentality may give other members of the squad confidence that they have the ability to make sure that they will not be playing in the second tier next season.