The 56-year-old was unable to save the Magpies from falling into the Championship this past season, but is nevertheless, likely to be viewed as the side's best signing this summer after agreeing to stay and lead their fight to return to the Premier League at the first time of asking.
And Townsend has explained that he is over the moon with the news, before discussing the impact that the Spaniard has had on his own game.
"It was fantastic news," he told the Chronicle. "Obviously, it's no secret how well the manager did towards the end of last season, how well he got us playing and also how he got me playing well as well and getting me back to the form I've shown."
Despite playing for a side battling near the bottom of the table, Townsend's form under Benitez saw him force his way back into the international fold, and make himself a serious contender to go to the European Championships with England.
And while many of the team will not have this summer's tournament to help them get over the disappointment of relegation, they will undoubtedly return to the club in high spirits given the way that they played during the final weeks of this past campaign.