A Saudi Arabian-backed consortium is attempting to purchase Newcastle from Mike Ashley, although a piracy lawsuit could scupper the deal.
Benitez stayed with Toon in 2016 despite being unable to prevent relegation. He won the Championship title the following season and constantly expressed his desire to stay at the club.
But clashes with Ashley over the club's direction came to a head last summer and the Spaniard departed for Dalian Yifang in China.
As soon as news broke that the Saudi-bid was serious, Benitez was linked with a return to Tyneside.
And Angulo, who won two La Liga titles and the UEFA Cup with Benitez at the Mestalla, would like to see his former manager return to the Premier League.
"I think it would be phenomenal for Benitez to return to Newcastle, given how well he knows the club. I know that Benitez was based in England for a long time now but I don't know the reasons that he left Newcastle the first time around.
"He has a great reputation in England and he is very hard working too. It would be great if he could return to the Premier League."
"I believe there had been a good team and there had been a good technical secretary and had been a good manger and, during a good number of years, Valencia CF was winning titles.
"With Benitez leaving, the philosophy changed when the new manager arrived with another idea. Also, the squad was being re-structured. It wasn't just a case of Benitez leaving. There were lots of other circumstances that perhaps meant that the team didn't play at its highest level."