Rumours emanating from Russia claimed the Slovakian was seeking a move away from Anfield after failing to settle in England.
Skrtel, who joined Liverpool from Zenit St Petersburg last January, is currently recovering from the serious knee injury he sustained at Manchester City last month.
Benitez has revealed he has spoken to Skrtel and he insists the 24-year-old is happy with life at Liverpool.
"These sort of stories always tend to come out during an international week," Benitez told the club's official website.
"I was talking with Martin at Melwood yesterday [Wednesday] and it was clear that he is very happy and just wants to get back playing.
"He is working very hard to get himself fit again and he is very settled at Liverpool - both in the city and at the club."
Meanwhile, Benitez has his fingers crossed that all his players return from international duty unscathed and ready to face Fulham this weekend.
"Hopefully the players will come back and be fit and ready for the game against Fulham because that is the most important thing for us now," he added.
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