The 49-year-old Spaniard replaced Javad Nekounam until the end of the Iran league season.
Foolad assistant coach Hamid Reza Rajabi headed Foolad in the match against Al Hilal in the 2022 AFC Champions League quarterfinals after Nekounam announced his resignation ahead of the match.
Under leadership of Rajabi, Foolad suffered a 1-0 loss against the Saudi Arabian giant.
Now, Benavente has been named as head coach of the Ahvaz-based side in the remaining matches.