The Scottish boss has hailed the club captain following his decision to sign a new contract, insisting that the 31-year-old should be commended for his work on and off the fieldKenny Dalglish has hailed Steven Gerrard after the Liverpool captain signed a new long-term deal at Anfield.
Following the player's decision to agree a new contract at the club, director of football Damien Comolli suggested that Gerrard is the best footballer produced by England in the past 20 years.
The Scotsman has since suggested that Gerrard may even be considered Liverpool's greatest ever player, also praising the skipper's work within the local community.
"Well I wouldn't disagree if that was the question you're asking me," Dalglish told reporters.
"He's certainly made a huge contribution to the football club but other people have different opinions.
"He wouldn't be far away from being mentioned as the greatest ever player for Liverpool football club.
"His standing within the community is fantastic, the way he does other work gleefully and happily and enjoys doing it for people less fortunate than himself is a great testament to him as well."
The midfielder is set to take up an ambassadorial position at the club when his playing days come to an end and Dalglish believes that he is perfect for the role.
He added: "Everyone knows the service he's given the football club, knows the success he's brought to the football club and know how much it means to him.
"So for him to be extending his contract and looking to work beyond when he finishes playing for the football club is a great lift and great news for everybody here."
The new deal sees Gerrard set for a one-club career, a rarity in the modern game, but Dalglish believes it is not that surprising considering the 31-year-old's passion for Liverpool.
He explained: "It doesn't happen very often, but it depends on the people. If the people are happy where they're working, happy with the people they're working for, then why would you move?
"The time when he stops playing is hopefully a few years away, but the fact he wants to continue working at the football club which he'd probably be a supporter of anyway, is great for everybody"