Benitez, 61, left St James' Park in 2019 after becoming fed up of working under Mike Ashley.
He next managed Dalian Professional in China, before returning to the Premier League at Goodison Park in the summer.
But owner Farhad Moshiri ignored the concerns of supporters and hired his man anyway.
Sky Italia's Gianluca DiMarzio, who spoke to Mybettingsites.co.uk, says it is 'really difficult' for Benitez to leave Everton now - but the former Chelsea boss would be Newcastle's 'dream' appointment.
The Toon have spoken to former Roma boss Paulo Fonseca, with chiefs including Amanda Staveley interviewing the Portuguese on Zoom last Wednesday.
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