The Paraguayan international looked set to leave the Portuguese giants after a fall-out with Benfica coach Jorge Jesus. He was thought to be the subject of an €18m bid from Russian club Spartak Moscow, but the transfer deadline came and went without the Chelsea target leaving and Spartak denied ever making an offer.
And the latest report claims Cardozo, who was tracked by Cardiff and West Ham as well as Chelsea, now wants to stay at the club.
West Ham ultimately signed Croatian international Mladen Petric on a free transfer after injury to Andy Carroll limited their striking options further.
They were expected to return for Cardozo in January having failed to secure a big-name forward in the summer window, but Carroll's injury forced their hand and Sam Allardyce was forced to draft in an immediate replacement.
The report claims Cardozo is not interested in a move to the Premier League anymore anyway, having settled his disagreement with Jorge Jesus.
The two publicly fell out towards the end of last season, as Benfica first lost to Chelsea in the Europa League final and then the league to Porto.
The 30-year-old forward has an exceptional goal record in Portugal, having bagged an impressive 105 league goals in 160 appearances.
But like Allardyce, Chelsea boss Jose Mourinho has his striker as well - the Stamford Bridge manager moved to bring in Samuel Eto'o from Anzhi before the deadline.