Kenedy hit the headlines for all the wrong reasons last month after posting an offensive video on social media during Chelsea's tour of Asia.
The 21-year-old was swiftly sent home by the club but his post caused outrage in China and Chelsea were forced to an issue an apology.
And he will be playing his football away from Stamford Bridge this season, according to The Mirror.
It is claimed Newcastle have snapped up the Brazil U20 international on a season-long loan.
Kenedy follows Christian Atsu to St James' Park although he joined a permanent deal.
Benitez has made no secret of his frustration at Newcastle's inactivity in the transfer market this summer.
But the Tyneside boss has attempted to ease tension from fans calling for more signings.
"I am not happy [with transfer dealings] but for me it is a challenge," Benitez told Sky Sports.
"I want to do my best. Every manager wants to improve and have better players, but at the same time, I am happy with the players I have because the team spirit was good last season and hopefully we can replicate that.
"It is important for the fans to understand that this year will be totally different.
"For the players it must be the same. We must have a game plan and try and stick to it."
Kenedy becomes the fourth Chelsea player to join a Premier League club on loan with Tammy Abraham, Ruben Loftus-Cheek and Kurt Zouma all playing their football away from Stamford bridge.
