The Spaniard has revealed that his growing frustration with the way the club was being run under American pair Tom Hicks and George Gillett almost saw him leave as speculation grew about his future.
But with Hicks and Gillett patching up their relationship, and chief executive Rick Parry heading for the exit, Benitez signed a new deal to stay at the club until 2014.
"It is true that at times I may have thought about my future," Benitez said.
"There was a lot of uncertainty at the club but when you put all of these things together and the fact I am sure we can improve, there was no doubt in my mind.
"It will be easier now the contract is done. Once you sign a contract you know you can start thinking about the future. That is why it was important to get it done as soon as possible.
"The uncertainty at the club was the only thing on my mind before. But delaying the decision before saying yes at the end of the season would have been worse for everyone because we would have lost some of our transfer targets or certainly been at a disadvantage."
According to reports, one such Liverpool target this summer could be Barcelona striker Samuel Eto'o, who is valued at £30m by the Spanish club.