Kewell has been informed he is free to leave Anfield when his contract expires in the summer.
The Australian has endured an injury-ravaged five years at Liverpool since his controversial arrival from Leeds.
The 29-year-old made his last appearance for Liverpool in the shock FA Cup defeat to Barnsley in February and Benitez has decided to let Kewell move on.
Reports suggest Kewell rejected a new deal on reduced wages and Benitez has admitted he could not reach an agreement with the player.
"We have tried to come to an agreement with the player and his agent, but that has not been possible," said Benitez.
"Kewell will leave the club at the end of his contract."
Benitez also revealed that the club would consider offers for John Arne Riise.
Riise recently revealed his fears over his future as he has just over a year to run on his current contract and as yet no new deal has been discussed.
Benitez says he is happy with Riise, but could sell him if he receives a suitable bid.
"With Riise and the rest of the players they have one or more years left on their contracts, so he is still our player at the moment and he knows if we receive a good offer - good for him and the club - it could be...
"But he is still our player and I am really pleased with him because he is a fantastic professional," added Benitez.
_________________
Always remember to forget the troubles that pass your way; BUT NEVER forget the blessings that come each day.
