Keegan says Dalglish's immediate success is down to the knowledge he has of the club.
"Well he'd be delighted to see someone like Kenny Dalglish back there," said Keegan.
"No disrespect to the ones who have been there before him, because Roy Hodgson and Rafael Benitez are good men, but he knows the club just like Bill Shankly knew the club.
"He cares about the club, he knows what it takes, he knows what the people want, you know, and I guess he'd have a good idea of how he can provide that over a period of time.
"He will need time, it's not going to be one of these jobs you're going to step into and solve the problems. You're not going to solve those problems over two or three months."