The 21-year-old full-back has impressed on loan from Cambridge but the League One strugglers have a recall option and their manager, Mark Bonner, last week hinted they would consider triggering it during next month’s transfer window.
Saddlers boss Flynn is eager for Bennett to remain and said: “I should know more toward the end of the week.
“Liam is a fantastic young prospect who has done really well for us. Sometimes you can read into another manager’s comments.
“I read Mark Bonner’s comments at the weekend and it said things maybe aren’t as clear as we thought they were.
“I am not sure if it will benefit Cambridge or not. But I would love to keep him.”
Walsall remain in talks with League Two rivals Mansfield over the future of Danny Johnson. The 13-goal top scorer’s loan is due to expire on January 16.
Flynn said: “There is no update. It will be one-man’s decision and that will be the Mansfield chairman’s.
He is well within his rights to make the decision he feels is best for Mansfield Town. It is not for want of trying. Danny is professional. We have him until January 16 but it is one of them. We have been trying. Let’s wait and see.
“Ultimately the decision will come down whether John they let him go or not. If he does, what is it for? Like I said, we can’t be held to ransom. But if there is a deal there it is something we are exploring.”