In his column for The Sun, El Tel wrote: "What was one of the rock-solid pillars of world football is now listing badly.
"That is why the appointment of Dalglish on a 12-month contract now would be so ideal at this current time.
"The Scot's steady hand at the tiller is just what the Kop - and their supporters - need during these stormy times.
"Dalglish is a Liverpool legend. He won almost every honour with the club as a player - including five League titles and three European Cups - after joining from Celtic as Kevin Keegan's replacement in 1977. Then when he became manager at Anfield he guided the club to three more titles and two FA Cups.
"He later led Blackburn to the Premier League crown in 1995 - when Rovers pipped Manchester United to the title despite losing at Anfield on the final day of the season - and Newcastle to the runners-up spot two years later.
"He was the last manager to win the League title with Liverpool, some 20 years ago. Back then the Kop was at the top of the game. Things are so different now.
"They do not have the money to go out and attract the kind of respected, big-name manager the club's rich history merits.
"But they do have the cash to promote one from within - and they do not have to look very far to find their man."