It is as yet unknown whether the Spaniard will remain at Newcastle United.
The Spaniard has been a big hit at Newcastle since replacing Steve McClaren at the club back in March.
It is not known whether he will stay at the club following their relegation to the Championship, with him having a break clause in his current deal.
He has been linked to the vacant manager’s job at Everton already, which would be a surprising move given his history with Liverpool.
And Carragher says he cannot see it happening, predicting that a stay at St. James' Park could be on the cards instead.
“There’s been a little bit of talk about Everton, but I don’t see that happening,” he told Sky Sports.
“There’s not that many Premier League jobs and he may look at that and think ‘one year in the Championship, get back in the Premier League, I can make Newcastle a force again’.”
Securing Benitez would certainly be a major coup for Newcastle ahead of next season.
He has been a big hit since his arrival and has the experience required turning the club around and making them into a force once again, as Carragher suggests.
How he would fare in the Championship would certainly make for fascinating viewing though, given he is more accustomed to working in the top leagues across Europe.