The 22-year-old, who spent the 2010-11 campaign on loan at the Stadium of Light, has joined last season's Portuguese Liga runners-up for an undisclosed fee on a five-year contract, which contains a buy-out clause starting at 60 million euros ($70 million).
"Eduardo Salvio is the latest enhancement to the SL Benfica football team," a club statement read.
"The player, 22, is returning to a club he knows very well.
"After having represented the club on loan in the 2010-11 season, Salvio has now signed a contract for five years. The termination clause of the Argentina international is 60 million euros."
Salvio, who arrived in the Spanish capital in 2010 from Argentinian club Lanus, told Benfica TV: "I never stopped being a 'Benfiquista'. I took the club to my heart and I feel I am back home."
Recalling his time with the club the campaign before last, he added: "I remember it was a great team who played excellent football. We always went out on the field looking to win.
"This year we have a team capable of fighting for big things. The fact that the same coach [Jorge Jesus] is here is a help. The squad has not changed much, which is good as I remember my former team-mates.
"I have grown in terms of being a player and a person. But I have not changed much and I will do my best to support the team.
"I want to win titles and play in the Champions League. It's also good to play for a big club. This makes me very happy."
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