The former Liverpool manager has signed a two-year deal and will be formally unveiled on Tuesday, June 15.
A statement released on their official website read: "Inter would like to welcome Rafael Benitez.
"This morning, with mutual satisfaction, the two-year agreement that will link the Spanish Coach to the club until June 30, 2012 was defined."
The decision to hire Benitez is a vote for continuity. Massimo Moratti is keen for last year's treble not to be the end of a cycle.