Dalglish told the club's official website, "I'll be in charge of one team and there will be a former 'international manager' in charge of the other.
"Alongside myself will be Roy Evans and hopefully Ronnie Moran. On the other bench will be Phil Thompson and Jamie Carragher, who will be given an introduction to a managerial career.
"A former England international manager will be in charge of their team in the shape of Mike Bassett (Ricky Tomlinson), who has assured me he will play 4-4-2," he said.
Other famous Reds names competing, including Ian Rush, Peter Beardsley, Jan Molby, and Steve Staunton.