Redknapp was the last player signed by Dalglish during his last reign as manager of the Reds.
He told the Daily Mail: "Kenny Dalglish doesn't need me to tell him what to do, but I would appoint Jamie Carragher to the coaching staff immediately. Don't wait for England to ask Carra. He's Liverpool's player.
"From day one, he should be involved as a player-coach. Jamie has a lot to offer; let's start preparing for the next generation now. Kenny will want and need specialists around him."