The Scot made his name as a player at Anfield before going on to become manager with equal success.

Dalglish has maintained an abiding affection for the club and the feeling is mutual. Not only will he be nurturing Liverpool's talented youngsters, he will also work with the commercial side of the business around the world.

Manager Rafael Benitez was keen to have Dalglish on board and believes his input will help Liverpool in the long-term.

Managing director Christian Purslow said: "In our very first meeting Rafa and I agreed that we wanted to try and bring Kenny back to the club. That would help Rafa really drive forward our academy, which is at the heart of our plans for the future.

"We are delighted he has agreed to join us and I am sure he will be very successful in his new role back at the club."