With Juventus not making a sufficient bid for the Italian, the Reds boss said he could feature next season, although he is looking for big signings to boost the squad
The Italian signed in 2009 to replace Xabi Alonso, who had moved to Real Madrid, but injuries and a lack of form limited him to a handful of appearances at Anfield and Roy Hodgson loaned him out to Juventus last summer.
The 26-year-old, who has scored twice in 36 appearances for the Serie A side, was expected to make his move to Turin permanent but the club have not made a bid which matches Liverpool’s valuation.
And newly confirmed manager Dalglish has said that the player would be a welcome addition to his squad for next season.
"There's a distinct possibility he could be back here. He's a quality player," he told reporters.
"He got off to a bad start here with his injuries and never really got going after missing pre-season.
"He went out on loan and has done very well over there. If he was to come back here, for me that would be like a new face coming in."
Dalglish has confirmed that the club's owners, Fenway Sports Group (FSG), have given him money to spend this summer and the Scot is determined to spend it on quality players, in the mould of Luis Suarez who has been a massive hit since joining in January.
"The people we'll be looking at are of the highest calibre, because the players here have done really well since January," said Dalglish.
"It would be disrespectful to them not for us not to be looking at a higher level.
"We've had a great end to the season. There will be lots of work done in the close season and we'll take it from there.
"Although it might affect them, players themselves expect new faces to come in and give the place a lift. It'll happen and they know it'll happen.
"If we get some quality people in to go along with the people already here that will help everyone - it always helps to freshen up the dressing room.
"But if we're bringing anyone in they've got to be better than what we've got - and that's going to be a big ask."
Dalglish has insisted that players on the periphery of the team will stay unless the club receives a suitable offer.
He added: "They are still our players unless someone comes and takes them away from us.
"We've got to assess what we need, and that includes the players who have been out on loan.
"They'll assess where they've been and the other club will assess them.
"Alberto is the highest profile but we've got decisions to make on those players but it may be dictated to be someone else making up their own mind.
"We've not had time to sit down and discuss the players who have been out on loan apart from Alberto."