Reynolds, 30, is out of contract at the end of the 2021 NRL season and is seeking a long-term deal.
However, Reynolds has been on the record to say that he and the club were miles apart from reaching an agreement.
But Bennett, despite stepping down as coach at the end of this year, wants the Rabbitohs to hold onto him beyond this season.
“I coach him, I know what he brings but it’s a decision that’s got to be worked out between him and the club,” Bennett told The Courier Mail.
“I’m sure they’ll come to a good conclusion, it might just take a bit of time, that’s all.
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“Adam doesn’t want to go and the club really doesn’t want to see him go, it’s just trying to make it work for both parties.”
Bennett reaffirmed that the contract situation won’t serve as a distraction for either Reynolds or the Rabbitohs.
“I don’t think it’s something that’s going to motivate him any more than what 10 years in the NRL has done,” he said.
“He’s played over 200 games, he knows the responsibility as the captain of Souths, he knows I won’t accept anything less than him doing his best.
“I don’t think he’s thinking about any options… He’s doing it because he loves the club, he wants to play well, and he wants the team to do well and he knows how important he is to it.”