The impressive young coach has been heavily tipped to take over at Hearts in recent days.
The 30-year-old has been heavily tipped to depart St James’ Park in recent days, with Scottish Premiership side Hearts reportedly determined to make him the youngest manager in the history of the top flight with highly-rated current coach Robbie Neilson expected to take over at League One outfit MK Dons.
Neilson won the Scottish Championship title before establishing the Edinburgh club back in the top tier during the last two seasons, so his departure will be a huge blow to a side with ambitions of European qualification.
But Benitez has told reporters that Hearts are yet to make their move for a valued member of his backroom staff.
"Ian's a great coach but we haven't had any official approach yet,” the Spaniard said in quotes reported by The Chronicle. “He is doing well. He has the qualities to coach."
Cathro is one of the brightest young minds in the British game, having spent time honing his trade with La Liga crisis club Valencia before arriving at St James’ Park under Steve McClaren.
Benitez decided to keep the Scotsman on after taking over from the current Derby County boss, though his seemingly inevitable departure means the former Real Madrid manager will have lost two of his most trusted colleagues in recent months after assistant Fabio Pecchia left to take charge of Hellas Verona.
However, The Chronicle reported earlier in the week that Newcastle would not stand in Cathro’s way if he decides to take on the role north of the border.