The Argentina captain has been in talks with Liverpool for several months and has been linked with club such as Barcelona and Real Madrid.
“We were talking, progressing and we’re closer now. Still we need to talk a little bit but we are closer,” said Benitez.
“It would be very important for the club. We have some important players with some years left on their contracts and this could be another one. It’s very important that we’re keeping the spine of the team.
“Every fan knows he’s a very important player for us, a key player who’s good for team spirit. He’s an example for a lot of players.
“He shows every game his commitment, desire and passion. He has great character, but he can also play. He’s a player every manager would like to have in their team.”
