Signed from Willem II for £3million by Gerard Houllier, the Finn has been a stalwart in the Liverpool defence over the years.
"I think Liverpool are losing a legend," said Benitez. "For years he has been so good.
"He has scored important goals and has been very, very good in defence. Clearly we are losing an important player.
"He will get a fantastic reception from the fans. They are amazing and they recognise when someone has been a very good servant to the club.
"He is a fantastic professional and a very good person, and the fans know this.
"It's good as a manager that, when you have a player with his name and experience, he still wants to learn. I have been really pleased working with him."
It is not yet known whether Hyypia will feature in Liverpool's final game of the season, at home to Tottenham Hotspur on Sunday afternoon.
