The 66-year-old will attend a ceremony at Anfield on Saturday where the old Centenary Stand will be unveiled as the Kenny Dalglish stand.
"Mike Gordon (Fenway Sports Group president - and the man who sacked Brendan Rodgers) was over and he asked to see me at Melwood," said Dalglish, who was sacked by the club in his second stint as manager in 2012.
"I went up to Jurgen's office and there was a laptop there and John (FSG's principal owner) and Linda (his wife) were on it and there was another one with Tom Werner (Liverpool chairman) on it.
"John started speaking and I thought, 'What have I done now?' I thought I was getting the sack again.
"I thought I was in trouble and then he said they wanted to name the stand after myself, as well as for the football it was for the work done with the community with Marina (Dalglish's wife) and the charity and everything."