No, the Vatican is a city and independent country but not a monastery.
He is now retired and living in a monastery in the Vatican where he prays, reads, studies and writes.
The retired Pope will remain in the Vatican.
Pope Benedict XVI lives in the Vatican and lead the Catholic Church from there. He is currently retired and lives in the Mater Ecclesiae Monastery in the Vatican Gardens, near St. Peter's basilica.
Pope Emeritus Benedict XVI lives in the the Mater Ecclesiae monastery in the Vatican Gardens near St Peter's Basilica in Vatican City.
If you are referring to Pope Emeritus Benedict XVI, he is spending the years of his retirement in a former monastery in the Vatican.
He lives in the city-state of Vatican City in the Mater Ecclesiae Monastery.
In his retirement Pope Emeritus Benedict XVI resides in the Mater Ecclesiae Monastery on the grounds of the Vatican.
His permanent home is the Mater Ecclesiae Monastery in the Vatican Gardens near St. Peter's Basilica.
The Popes, including the present Pope (in 2014), Pope Francis, have lived in the Vatican for most of the last 1,700 years, and in the city of Rome for nearly the entire 2,000 year existence of the Church. Vatican City, or the Vatican, is an independent city state within the Italian capital city of Rome. It is an independent "nation" with its own civil service [the Curia], police force and even its own "army" - the Swiss Guard. During the summer, for the past several centuries they have gone to Castle Gondolfo to escape the oppressive summer heat in Rome. The pope resides in the Papal Apartments of the Apostolic Palace of the Vatican. It is, in actuality, quite a modest dwelling. However, our new pope, Francis, has decided to forego the Papal Apartments and is living in a small apartment in Casa Santa Marta, a sort of guest hostel in the Vatican.
Before becoming pope he resided in Rome. After he was elected pope he moved to the Papal Apartments in the Apostolic Palace of the Vatican. Since retirement in 2103 he lives in the Mater Ecclesiae monastery in the Vatican Gardens near St Peter's Basilica.
Pope Benedict, as all recent popes, lived in the Papal Apartments in the Apostolic Palace in the Vatican. His rooms are not luxuriously decorated but quite simple. Now that he is retired he resides in the Mater Ecclesiae monastery in the Vatican Gardens near St Peter's.
Pope Benedict XVI is not being "held" anywhere. He is currently residing in Castel Gandolfo until the convent at the Vatican where he will spend the rest of his days is finished.