Chelsea have a policy of only offering single-year extensions to over-30s and Terry, 32, will want a swift resolution to his position in the summer.
Luiz has no such worries as he is one of the most engaging talents in the Chelsea side and a favourite of owner Roman Abramovich, but his cavalier approach, and habit of making costly errors, most recently in the 5-1 midweek win over Leeds, divides opinion about his best position.
Having had four weeks to assess his squad, Benítez is leaning towards the view that Luiz is a central midfielder of rare promise, rather than long-term centre-half. He was used in midfield in last week's Club World Cup semi-final against Monterrey, and Benítez says that, given his penchant for risk-taking, that is where his future lies.
"It's easier for him [in midfield]. At centre-back one mistake everyone sees. In midfield it's easier. He likes to play and enjoys keeping the ball, passing the ball and going forward. If he adjusts those things at centre-back he will be even better.
"He's a player who likes to play and wants to help and win. He likes to be seen to take a risk where it's necessary. I encourage him to try things. To do the easy things as well but are times he has to try things."
Terry's absence may restrict Luiz's chances in midfield over the Christmas period, where Lampard's return to fitness offers Benítez more options. Lampard seems increasingly likely to leave the club by the summer, but in a demonstration of his limited brief as interim coach, Benítez admitted he had no influence over his situation.
"We are not talking about this [his future]. I see a player training well and working hard. It would be better [for me] in other circumstances, and to be in another position where you can make decision. But I knew what was going on, so I have to concentrate on my position and do the best that I can."
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