Napoli are understood to be running out of patience over Benitez’s failure to agree a new deal and will appoint Sampdoria boss Sinisa Mihajlovic for next season.
The former Reds chief also criticised the decision of owner Aurelio De Laurentiis to order the players into a full-time training camp following a recent defeat in the Copa Italia.
But Benitez has said nothing has been decided on his future yet but it didn’t stop him complimenting City.
“I haven’t said no to Napoli and there is nothing in it with Manchester City,” Benitez was quoted by the Mirror as saying.
“I was in England for many years and I know which clubs do a good job and City is one of them. I like City but I haven’t had any offers and there is no agreement. I am just thinking about doing well at Napoli.”
Benitez hinted that unless there was investment then he could walk away, though.
“If he club plans to grow, I will talk with my family and assess the possibility of staying,” he said.
Pellegrini, meanwhile, is coming under mounting pressure after a torrid run of form that has seen them slip down to fourth place.
Benitez, on the other hand, is looking to a Premier League move in order to be closer to his family in Liverpool with him linked with a number of jobs in England since he left the country. He has been outspoken in his desire to one day manage in the UK again.