Wanderley Luxemburgo's 11-month spell in charge of Real came to an end on Sunday and Benitez is one of the names being mentioned to take charge of the Spanish giants.
However, Benitez said: "I am happy at Liverpool, I am Liverpool's manager and I have a job to do here," said Benitez.
"I have said this in the past and now I have an important game in the Champions League against Chelsea to think about and that is all that is on my mind.
"I certainly will not allow this speculation to disrupt my preparation for the game, but as I say, I am happy here at this club."