The 28-year-old has sat out the Reds' last four matches - against Blackburn, Chelsea, Arsenal and Hull - through injury, but is now fit again and expected to add fresh impetus to the Merseysiders' Premier League title tilt.
"Steven is doing well and is training with the rest of the team,” Benitez told the club’s official website.
"I think he will be fit and available for Sunday. It is good news for the team and for him because he can be a key player for us over the remaining games.
"Without Steven the squad has been playing well and scoring goals, so that is positive."
The Reds currently lie second in the league standings, three points behind Manchester United having played one game more.
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