The former Bhoys great feels that neither his old side nor the Londoners will have wanted to be facing each other...
The former Scotland international also thinks that the Gunners would have preferred a different opponent as well, with the Londoners, according to Dalglish, not likely to relish a 'Battle of Britain' encounter.
"It's going to be a difficult game. It's probably the hardest one they could have picked out," he told Sky Sports News.
"I don't think there were too many who gave them [Celtic] a chance when they went to Moscow and they won there, so you don't what's going to happen do you?
"But it's going to be difficult for both teams. I don't know if Celtic would have been a lot happier with some other teams, but then I'm sure Arsenal were in the same boat."
The first leg of the tie will be played at Celtic Park on August 18 or 19, with the second leg scheduled for the Emirates Stadium a week later.
Zack Wilson, Goal.com