Benitez has been demanding big money to spend, if he is to stay at St. James’ Park.
And Newcastle are apparently prepared to give him £50 million to spend on new players.
That total could be raised to £70 million, if Newcastle manage to offload a number of their fringe players.
Whether that budget will be enough to convince Benitez to stick around remains to be seen.
The Newcastle boss’s future is currently very uncertain, with West Ham United said to be chasing him.
West Ham are keen to bring in Benitez, as they look to replace David Moyes.
Benitez has performed a remarkable job at Newcastle over the past campaign, leading them to a 10th place finish in their first season back in the Premier League.