The Sky Blues had the midfielder on loan last season and were keen to bring The Reds ace back to Highfield Road - enabling him to gain more experience.
However, Benitez, who recently joined the Anfield club after departing champions Valencia, is keen to evaluate the talent in his current squad.
Sky Blues manager Peter Reid was reportedly tracking Leeds United Stephen McPhail, but was forced to look elsewhere once he joined Barnsley.
"I have been in touch with Liverpool, but the new manager wants to have a look at all his players, but I will be keeping in touch." explained Reid.
