The Anfield owner paid tribute to the Scot's "towering" legacy as a player and manager with the club, and is confident he will help Brendan Rodgers achieve his future goals
The 62-year-old left Anfield in May 2012 when he was sacked as manager following a season which saw the Reds finish eighth in the Premier League and face criticism over the Luis Suarez racism row.
But rather than reflecting on the past, Henry insists he has brought the Scot back to build for the future, and has expressed is delight in being able to confirm the reunion.
|15/2||Liverpool are 15/2 with bet365 to win the Premier League
"Kenny is a towering figure in the history of Liverpool Football Club. Along with Bill Shankly, he embodies what the club stands for.
"As a player and a manager, Kenny established his position as a football great. But that is only half the story.
"His compassion and leadership in the immediate aftermath of Hillsborough brought great solace to the families of the 96.
"His support of the campaign for justice since 1989 has been unfailing and inspirational and has given him a status that goes far beyond that of a mere sporting figure.
"However, the return of Kenny Dalglish is not about the past. We are building for the future. From the dressing room to the boardroom, we are creating a structure that will take Liverpool back to the top.
"It is not an easy task. Kenny brings the sort of intelligence, experience and knowledge that will help us reach our goals.
"Tom, Ian, Brendan and I along with every single Liverpool supporter, staff member and player want to welcome back Kenny with the same warmth and depth of feeling that he has shown for his club over these decades."