Dalglish told the Scottish Sun: "You often get these questions about whether we ever thought someone would be a manager at a certain point in his career.
"In McCoist's case, I'd prefer to say 'Why not?'
"To my mind the job demands someone with a level of intelligence about football itself and clearly Ally has that in his locker.
"Throw in the fact that he knows an awful lot about a particular football club and that's a pretty good combination.
"So he ticks a number of boxes for Rangers.
"You then add the fact that he worked for a fair number of years with someone of the calibre of Walter Smith.
"Walter was the perfect mentor for him and now he's the main man.
"I've seen him on TV and he seems to have adjusted to life in the dugout with the suit on instead of the tracksuit.
"If he lost as much weight as he has hair, then he'd do fine!"
Dalglish added: "Kenny McDowall is an excellent guy to have alongside him.
"I knew Kenny when he was coaching at Celtic and he impressed me back then.
"When John Barnes left I moved Kenny up to work with me.
"That was a few years ago but he had a lot of sound ideas. So I think Rangers have the right team in the dugout.”