The 42-year-old will leave his old role as coach on the Under-18 setup to join up with Rodgers’ staff at the club’s Melwood training base after helping in first-team matters over the summer.
Rodgers is delighted to have Marsh working alongside him and feels it’s vital to the team to have someone understands the club and city in the management structure.
"Michael will sign a deal this week,” Rodgers confirmed.
“For me, it is very important to have people with the sort of root of Liverpool in their heart, the soul of the club.
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"I've come in and I've got an understanding of what it is like. I feel I'm from the same bottle of the people of Liverpool and the city, with similar backgrounds. There are no worries about that, and I've also got players from Liverpool in the first-team group.
"When I went to Swansea, I went in on my own and promoted a couple of people from there, such as Colin Pascoe to first-team coach. He was a former player there and from the Swansea area.
"When I looked at the staff when I came in, Marshy was someone who had come in with the Under-18s. He was a terrific young player - he walked out of a pub team into Liverpool, which is an absolutely incredible story. His roots are here at the club, his passion is for the club and he's played for the club. He was here in a period when we were a proper team, a proper club.
"He will also help build a bridge between the first team and the Academy. It is important for me this bridge is smooth and the young players can come across and progress into the first team."