Reports on Sunday suggested former boss Dalglish, who is also rated the club's greatest player, was about to return to take up a role overseeing youth development.
"Kenny has had a development on this football club over the years and if there is a future involvement it can only be good for the club," said the former midfielder.
"For me he has never really been away. He is hanging around everywhere, he's always watching games and is terrific to have around.
"The impact would be very positive. He is a terrific character, he has terrific knowledge and I think he can only be a great addition to what is already a very good staff.
"I'm sure everyone would welcome it, not least me as he has a worse accent than me!"
"For me there is something special about the club, it is a special place," he added.