Former Livepool star Kenny Dalglish will return to the club in a backroom staff role.
Reports suggest that the 58-year old will be used in a development role for younger players but it has not yet been made official.
Manager Rafael Benitez is keen on improving Liverpool's Youth Academy and it is believed that Dalglish is keen to be involved.
The announcement is expected to be made some time before the end of the season.