New Liverpool boss Roy Hodgson has confirmed Kenny Dalglish is staying on staff.
Dalglish put his name forward to return to a position he successfully held in the late 1980s and early 1990s but that was rejected by the board and doubts were raised about whether he would sever ties with the Reds as a result.
However, Hodgson is a long-time friend of the Scot and wants to embrace the knowledge and influence the 59-year-old possesses with a more formal position in youth development.
"I never doubted that Kenny would leave. He's been offered a role, which I believe is a crucial role for the club - not just in the short term but in the long term," Hodgson said.
"He is very aware of all the players at the academy and I understand there are a few promising players emerging.
"He will liaise between Melwood (the first-team training ground) and Kirkby (the academy) and keep me updated with any developments that he deems necessary.
"There is a bridge between the academy and the first team that needs to be created and I believe he can help build that bridge."
