Dalglish believes Gerrard would be 'very proud' to be asked to captain England this summer.
Dalglish said: "All we can speak about is Steven and his time at Liverpool Football Club and the service he has given us and the way he has led the club many times by example on and off the pitch.
"He's a real credit to the club.
"We cannot speak highly enough of Steven but that is our opinion, if someone differs from that then that is up to them.
"I am sure if he was asked (to be captain) he'd be very proud."