The Anfield club are on the prowl for a replacement for Rafael Benitez and installed Dalglish to lead the search with managing director Christian Purslow.
But reports suggest that Dalglish may put himself forward for the job after seeing the shortlist of candidates.
The top name on that list is Fulham’s Roy Hodgson but it is believed that he will remain in London so Dalglish now has interest in taking the reins at his beloved club.
He had a stint as manager of the Reds in between 1985 and 1991 before moving onto Blackburn, Newcastle and Celtic. He then returned to Anfield last year in an ambassadorial role as well as overseeing the youth academy but it now seems he wants to do more for a club who has struggled for silverware in recent times.