The Magpies have only registered one point in their last eight Premier League matches, but Benitez, who spoke to talkSPORT's Graham Courtney, said his talks with Charnley are gathering momentum.
Confidence around the club's players and staff still remains to be high, with captain Jamaal Lascelles echoing those recently, although they know they will be in for a challenge when they meet the Emirates Stadium outfit.
"But they have chose to do this and I think that's very positive".
"They want to give a very clear message that they care and they want to do things right so they have made a decision to cancel their Christmas party", the former Liverpool boss told reporters. This group of players are working so hard - they are giving everything - that I couldn't say: "'You don't deserve to do this or that.' But I think their decision is very positive".
"I have said to them maybe later they could have dinner or whatever in the future when things are going well".
"We have to progress and it is so obvious that we have to improve things".
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"We were talking about what we want to do and players that maybe we would like to bring here, or players that maybe could go for any reason".
'It was just to talk about ideas.
"The main thing, we had this conversation, then we have to move forward quickly".
Asked if he had been given an indication of a budget, Benitez replied: 'I don't know the details, but at least we were talking about that.
"I don't think it is having an effect", he said. "We now have to put these names on the table and in a few days we have to try and start doing business".
Arsenal haven't gotten a win in the Premier League since the end of November either, but they can start getting their form turned around and add to Newcastle's misery with an emphatic victory here on Saturday.