The explosive device was discovered on Sunday night as police made searches in connection with an on-going incident unconnected with the former Liverpool manager.
The Army's bomb disposal team were called to the address, in Selworthy Road, Southport, Merseyside, and the area was cordoned off for the public's safety.
A Merseyside Police spokeswoman said: "The device was removed and made safe and is currently undergoing forensic examination.
"The road remains cordoned off at its junction with Sandringham Road and high-visibility patrols have been stepped up in the area to reassure the public.
"Detectives believe this incident is linked to a series of other recent incidents in this area and not to the owner of the property where the device was found."
It was announced earlier this month that he had resumed his Anfield career with a senior role at Liverpool's Academy.
His club said it had received no information about the incident and would not comment.
Mr Dalglish lives at the house with his wife Marina.