Former Chelsea man keen to bring the good times back
Clarke, who played over 500 senior matches for St Mirren and Chelsea, was assistant manager at Stamford Bridge under Jose Mourinho, and also at West Ham United under Gianfranco Zola.
"I was sat at home doing nothing and now I've got the chance of working with a football great in Kenny Dalglish and also working for one of the world's leading football clubs" Clarke told Liverpool's official website.
"This was something I couldn't turn down.
"I am grateful for everybody who has given me such a warm welcome, especially all those here at Melwood.
"I am really looking forward to working with Kenny and the rest of the staff to help bring good times back to the club."
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