The People says he is ready to quit Britain, having turned down two Madrid attempts to snap up the 2003 Champions League mastermind.
Real are not the only football superpower primed to make a move, with friends close to Benitez insisting he will no longer be at Anfield next season.
Benitez is frustrated at trying to keep Liverpool in touch with the Big Three - with both hands tied behind his back financially.
He said: "I would not like to say it's a Big Three because I want to see my team as one of the top sides. But I have said before and my message is very clear: we must do almost everything perfectly to compete with the likes of Manchester United at the moment. But we still must try to do it.
"You know the figures. Over a season it is a massive difference with United because they get 75,000 fans every other week and Arsenal 60,000.
"That is £2million or £3m more every other week and with that you can buy one or two top-class players.
"So how can you compete with that and reduce the gap? The only answer is to do everything almost perfectly."