Dalglish wants fans to respect the job Hodgson did in such dark days.
He insisted: "It was a difficult time for Liverpool Football Club, the same as what the league run has been recently.
"But I have the utmost respect for Roy as a person, a coach and a manager. He conducted himself in a dignified manner, we always got on well and that won't change.
"He's done very well at West Brom. He did well last year to keep them up and he did it easily this season. It will be good to see him back at Anfield. I'm sure people will respect the fact he served Liverpool and I'm sure they will give him a warm reception."