King Kenny returns to Liverpool FC
The first challenge to be faced by Dalglish will be today's third round FA Cup tie against Manchester United.
His appointment, for the rest of the season, was met with euphoria by the Liverpool fans, who regard the Glaswegian as the greatest player ever to pull on a red shirt.
"It's a dream, the King is back," wrote one fan in the blogosphere. Another said: "It would take Sherlock Holmes to find a fan who is not happy with the appointment as manager of Liverpool's greatest ever player and the last man to lead the club to a league title."
Club owner John Henry said: "Kenny was not just a legendary footballer, he was the third of our three most successful managers - three giants. We are extraordinarily fortunate and grateful that he has decided to step in during the middle of this season."
Chairman Tom Werner said: "Kenny will bring considerable experience to the position."