Kenny Dalglish was yesterday appointed permanent manager of Liverpool, having previously been in caretaker charge, after signing a three-year contract, the English Premier League club announced.

Dalglish, widely regarded as the club’s greatest player, has breathed new life into the club since he replaced Roy Hodgson as Liverpool manager on a temporary basis in January and the Reds could finish the season as high as fifth place.

Coach Steve Clarke, who arrived not long after Dalglish in January, has also signed a three-year contract.

John Henry, whose US-based Fenway Sports Group owns Liverpool, had been in contract talks with Dalglish in recent weeks and he said there was no-one else they wanted for the job.

“Kenny is a legendary Liverpool figure both as a supremely gifted footballer and successful manager,” Henry said in a statement.

“Since returning in January he has shown extraordinary leadership and the ability to bring the best out of so many people associated with the club.

“It was obvious to us very early on that the atmosphere surrounding the club had been transformed by his presence.

“No-one else could have produced such a response. Therefore, I’m delighted we have agreed to a new contract. We didn’t need nor want to look elsewhere for the right man to manage the team.”

Scotland great Dalglish added: “I said when I took the job on in January that I was just happy to help the club out for the remainder of the season.

“Now the owners have decided in their wisdom that they want me to stay a little longer and it’s fantastic news for both myself and Steve Clarke that we have signed these contracts.

“I’m delighted to have the opportunity to help build something special here again. I want to salute the efforts of all the players as they have been fantastic and thank everyone at the club for the welcome they have given me since I returned in January.

“I also want to pay tribute to Steve Clarke’s input since we started working together as he has brought great experience and knowledge to the role. The players enjoy the training sessions, understand their relevance to our actual football games and have responded brilliantly.”

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.