Dalglish told the Scottish Sun: "Danny came down to Liverpool because they liked what they saw - and he has not lost that.
"It is difficult to get into that Liverpool first team. People go down from Scottish football to the Premier League and think they are going to go straight in.
"With all due respect it is hard to do that. There were top class centre-halves there at the time.
"When Danny came down he was 19 years of age and he was still developing.
"He also picked up a couple of injuries as well there. When I took over as boss he played Europa League games for us and wherever he played he would go on and enjoy it and do his best for you.
"If he gets an even break then he's got a good chance, he will get a good career out of football."