The Guardian says Dalglish has told Liverpool he is prepared to make a sensational return as manager as the previous incumbent, Rafael Benítez, agreed to become the new coach of Internazionale last night.
Dalglish, who quit the Anfield job in 1991, is currently charged with identifying the club's next manager alongside the managing director, Christian Purslow. The Liverpool legend, however, is willing to enter his own name into that process and believes he can revive the club's fortunes on a limited budget and, crucially, convince Steven Gerrard and Fernando Torres not to leave this summer.
Dalglish, 59, has admitted that he regrets quitting as Liverpool manager 19 years ago, when the stresses of dealing with the Hillsborough disaster took their toll, and claimed he would have been ready to return after a brief sabbatical.
The Scot's desire for the position may present a problem for Purslow and the Anfield board, who are looking at replacing Benítez with a manager currently in the game. Roy Hodgson emerged as the favourite in the aftermath of the Spaniard's exit last week, although no official approach has been made to Fulham. Any appointment of Dalglish, who has not managed since his acrimonious departure from Celtic in 2000, would appease many Liverpool supporters at a turbulent time.