Keegan is impressed by how Dalglish has transformed Liverpool's fortunes.
He told Absolute Radio: "Well he'd be delighted to see someone like Kenny Dalglish back there, no disrespect to the ones who have been there before him, because Roy Hodgson and Rafael Benítez are good men, but he knows the club just like Bill Shankly knew the club, he cares about the club, he knows what it takes, he knows what the people want, you know, and I guess he'd have a good idea of how he can provide that over a period of time.
"He will need time, it's not going to be one of these jobs you're going to step into and solve the problems of the last four or five years of a club that has been in decline, you're not going to solve those problems over two or three months, but get some better players in because a lot of the players that Liverpool have signed over the last couple of years, two, three, four years, have not really been good enough.
"That's shown in the results and it always will, you know, you can't get away with things in that league, the Premier League is a tough league."
This Saturday Absolute Radio's Rock 'N' Roll Football show travels to Upton Park for West Ham v Stoke. You can tune in every Saturday on Absolute Radio extra - on DAB Digital Radio, 1215AM and online in the UK from 1.30pm as programming kicks off with Russ Williams for pre-match build up, followed by full live commentary from Jim Proudfoot, while Ian Wright takes care of post match analysis featuring player and manager interviews, fan phone ins and a healthy supply of banter.
Tune in for the full Jim Proudfoot interview with Kevin Keegan. For more go to absoluteradio.co.uk/football.