Benayoun has been in fine form for Racing Santander this season, and has developed himself a reputation for being a hard-working goalscoring midfielder.
Wanderers manager Sam Allardyce has been a long term admirer of the former Maccabi Haifa player after tracking his progress in La Liga for quite some time.
The 24-year old will be granted a European Union passport in the summer thus eliminating any potential work permit problems.