It had been reported earlier on Thursday that Benitez's agent Manuel Garcia Quilon and Inter were in talks with a view to ending his brief tenure at the club.
That came after 48 hours of intense speculation that he was on the verge of leaving his post, with the Spaniard having issued a 'back me or sack me' ultimatum to Inter president Massimo Moratti following their triumph over African side TP Mazembe in the Club World Cup final at the weekend.
"FC Internazionale and Rafael Benitez have reached a satisfactory consensus and agreed to the early termination of their relationship," a statement on Inter's official website read.
"Inter thanked Rafael Benitez for his work in leading the team which experienced success in the Italian Supercup and FIFA Club World Cup.
"Rafael Benitez thanked Inter for the important professional experience (of being in charge) and for their victories together."
Inter are seventh in Serie A having won a treble of the Scudetto, Champions League and Coppa Italia under current Real Madrid coach Jose Mourinho last term.
It seems that the decision to part company is mainly Inter's, but that has not been confirmed by the parties involved.
Benitez is currently back at his home on Merseyside, where he managed for six years, prompting speculation in the English media that he is in line to return to Liverpool to replace Roy Hodgson despite only leaving in the summer with a reported £6 million in severance pay.
Benitez agreed to replace Mourinho at the Giuseppe Meazza only a week after leaving the Reds, having fallen out spectacularly with then owners Tom Hicks and George Gillett.
The Anfield outfit have since been taken over by another American pair, John W. Henry and Tom Werner, but it appears unlikely he would be reinstalled so quickly despite apparent fans' backing.
Inter's city rivals Milan, who lead the table, are a massive 13 points clear of the Nerazzurri heading into the winter break while Tottenham beat them at White Hart Lane in the Champions League and ultimately finished top of their group.
That has left Inter facing a tricky last-16 clash against Bayern Munich in February.
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