After a blip over the winter and reported disquiet about a lack of spending at St James' Park, Benitez has weaved his magic, with his side losing just one of their last nine, winning their last four.
The most recent victory came on Sunday as the Magpies came from behind to beat the Gunners 2-1.
Once again rumours are rife that Arsene Wenger could leave the Emirates in the summer and Benitez's pedigree means he would fit the profile the Arsenal hierarchy are searching for.
When quizzed on the subject, the 58-year-old said he understood the speculation but insists that for now he is happy at Newcastle and expects to sign a new contract.
"The fact that you get linked, it is something positive because it makes you proud of your career trajectory," Benitez told Radio Marca. "People in England are conscious of the fact that experience in the Premier League is important and, what is more, you go to other competitions and other leagues and win as well."
Asked if he would sign a new contract, he replied: "Yes, in principal we are relaxed, We have one more year of contract and now the board are trying that we talk a little bit about the future because the talk now is always about projects."