Benteke played a key role in keeping Villa in the Barclays Premier League towards the end of last season.
The Belgian scored 11 goals in the final 13 matches of the season to help Villa secure their top-flight status on the penultimate weekend of the campaign.
Responding to rumors about interest from Liverpool, Sherwood confirmed earlier this week that he player had a “substantial” release clause, reported to be £32.5million, in his contract.
“I will have a chat with him,” Sherwood said.
“I have told him I want him to stay.
“I want him to have a good season and score at the same ratio as he did when I came in here.
“I’m not sure what his plans are, he didn’t tell me either way.
“But I think it is right to talk to him about the speculation and put it to bed. We need to offer him a new contract, which the club are prepared to do, and he needs to sign it.
“When he does we know he’s not going anywhere.”
Even if Benteke does not sign new terms, he will not be leaving on the cheap.
“If no one meets the buy-out clause, he won’t be going anywhere,” Sherwood said.
Even though owner Randy Lerner is looking to sell the club, Sherwood has been told he can sign new players, providing he proves they will improve the squad.
The Villa boss hinted there would be wholesale changes in the aftermath of the 4-0 defeat to the Gunners, claiming the current squad possesses a “losing habit” that needs to change if the club is to avoid another relegation scrap next year.