Carragher, 33, who has had an illustrious career with the Reds, was left out of the starting line-up that beat Chelsea last weekend, with Daniel Agger and Martin Skrtel preferred in central defence.
The move by Dalglish had brought about speculation that his defender may no longer have a future at the club, but the manager moved to dismiss these claims.
"Carra has only been back a week after his calf injury," Dalglish was quoted as saying by Sky Sports.
"He's an important part of this football club and of this squad, now and going forward. He knows that and we know that.
"We know what he's done for the football club. The respect and admiration he has here from myself and everyone else connected. He understands."
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