"He has a lot of passion. When I asked him to come he was very pleased, but first he wanted to find out if there was a school where his three children could play good football. He is a football man."
Benitez signed Pellegrino on a free transfer from Valencia in January 2005, but he was released that summer and returned to Spain to play with Alaves.
Since his retirement in 2006, Pellegrino has been on the coaching team at Valencia, looking after the youth team.
The Liverpool boss has looked to strengthen Liverpool's backroom team ahead of the new season following the departure of Alex Miller, who left to manage JEF United in Japan, at the end of last season.
The appointment also coincides with the official departure of former coach Pako Ayestaran who had been on 'gardening leave' for much of last season after a reported fall-out with Benitez.
The Spaniard welcomed back 18 players for pre-season training on Monday, with the players involved in Euro 2008 given an extended break.
I am very proud of him and what he has achieved.
Rafael Benitez on Fernando Torres
Liverpool's successful Spanish contingent, which includes match-winner Fernando Torres, have been given an extra three weeks off to recover from their exertions in Austria and Switzerland.
And the Liverpool manager praised the contribution of the club's record signing who scored Spain's only goal against Germany in Sunday's final in Vienna.
"I am very proud of Fernando, especially after he has been criticised from some journalists in Spain," Benitez said.
"Everyone in Spain remembers the Marcelino goal from 44 years ago (when Spain were last European champions), and the last final Spain were in was 24 years ago.
"Now people will talk about Torres in the same way, I am very proud of him and what he has achieved."
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