Dalglish is returning to the club as part of the Academy staff and told liverpoolfc.tv: "Fernando has been invaluable to Liverpool Football Club in the two years he's been here and he has made a massive contribution, both in terms of the number of goals he's scored and his sheer presence on the pitch.
"A lot of people stood up and took notice when he scored his first goal for the club against Chelsea at Anfield because he took it so brilliantly.
"If people hadn't already taken him seriously, they certainly did from that moment on.
"He's since scored some spectacular goals, but it is his clinicalness that I like - his goal against Blackburn earlier this year was fantastic.
"Torres is a real threat that opponents don't like coming up against and Fernando can be more than delighted with what he's achieved since he came here because he's certainly made a profuse contribution."