WEDNESDAY manager Steve Bruce is closing in on a switch to hometown club Newcastle United - and could be confirmed as the new Magpies chief before the weekend.
Benitez left St James' Park at the end of last month after not renewing his contract, with his reign blighted by claims that the retail magnate, who owns British sporting goods giant Sports Direct, was refusing to back him in the transfer market.
However, Allardyce told talkSPORT: "I was very flattered that I was considered but it's that thing..."
Writing on his blog for the first time since joining Dalian, Benitez highlighted the warm welcome he had received at the club, in contrast with the hard relationship he endured with Newcastle owner Ashley and his management team. I appreciate the offer, but I was surprised, I've not worked for a full season. Before I would want to try and save a side, ' he said.
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"I never got to talk to Mike, it was just my agent contacted me and I had a quick think about it and a look at the situation".
"I had a fabulous start but we were desperate for better players".
British media reported former Manchester United defender Steve Bruce is among the frontrunners for the Newcastle hot seat and Allardyce believes the Sheffield Wednesday manager would relish the opportunity to take up a fresh challenge on Tyneside.
A boyhood Newcastle fan, it is the job his parents, who died a year ago, always wanted Bruce to take and although he will walk into the eye of a storm on Tyneside he is ready to accept the criticism that will follow his appointment.