His team faces City on Wednesday having been comprehensively beaten 3-0 by Roberto Mancini's men at the Etihad Stadium just over a week ago.
Despite the defeat Dalglish remains upbeat about his side’s chances of progression in the competition and believes the recent result will have no bearing on their two legged semifinal against Roberto Mancini’s men.
“We lost 3-0 and so we will look at it but I don't think it will be a reflection on the next two games coming up [against City],” Dalglish told reporters.
Liverpool striker Craig Bellamy is also remaining upbeat about the tie.
The Welshman claims playing the second leg at Anfield could work in their favor and believes the 3-0 scoreline a week ago flattered their rivals.
“It's a two-legged match and we have to make sure we are still in the tie,” Bellamy told reporters. “We have the second leg at Anfield and this club knows all about two-legged games, so if we can get it back to Anfield still very much in the tie we will have a great chance of getting to Wembley.
He added, “This club is used to getting to semifinals and finals and all we can do is give it our best and see where it takes us.
“For me I didn't believe the 3-0 scoreline was quite correct and this is not just me with my Liverpool head on, but if I was watching the game as a neutral we had 66 percent possession which is a lot for an away side, especially against a team of Man City's caliber.
“This is why you play for Liverpool and this is what it brings. It's not just playing Man United [Liverpool’s opponents in the fourth round of the FA Cup] or Man City, it's when you travel anywhere because we are expected to win.”