كتب : Mohamed Sabe
Benfica's president, Luis Filipe Vieira, has traveled to Manchester on Wednesday to talk with the Swede manager.
"The club confirms talks…with Eriksson but up till now no details of the contract, namely salaries and timing, have been discussed," the club said in a statement.
Benfica have been without a coach since the resignation of Jose Antonio Camacho.
Eriksson's future with City has become uncertain after Thai owner Thaksin Shinawatra publicly criticized the former England coach for the team's performance this season.
However, the former Thai Prime Minister insisted that no decision has been made yet regarding Eriksson.
"We have made no decision," he said. "We will do an evaluation at the end of the season."
Manchester City are currently in 9th place in the Premier League table on 55 points with one game to go.
But with rumors that Shinawatra offered Eriksson's job to Portugal coach Luiz Felipe Scolari and Benfica refusing to confirm or deny Vieira's visit to England, the 60-year-old coach looks set to return to Lisbon.
Eriksson had coached Benfica on two occasions previously, the first time from 1982 to 1984 and the second from 1989 1992.