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Dalglish (right) first joined Liverpool from Celtic for �440,000 in 1977

Kenny Dalglish has returned to Liverpool to take up a senior role at the club's academy.

The Anfield legend, who won eight League titles in 14 years with the Reds as a player and manager, will also act as a club ambassador.

"I spoke to manager Rafael Benitez a few months ago and things have progressed from there," Dalglish told the Liverpool website.

"Now that it has come to fruition I am very excited, but also a bit nervous."

Dalglish's arrival back at Anfield has been mooted for some time and comes during a summer in which manager Rafael Benitez has conducted sweeping changes behind the scenes.

"Rafa has made a very brave decision to revamp the academy," added Dalglish.

	Kenny has played for the club, he's managed the club, he's done everything. He's a fantastic signing Liverpool boss Rafael Benitez

"There are lots of positive things happening here and there is a real feel-good factor around the place. It's fantastic for me to be a part of that.

"People who come to the academy should be delighted that Rafa is taking such an interest in the development of the young players.

"Everyone knows the most important team at the club is the first team and hopefully we can start producing players to challenge for a place in Rafa's plans.

"It won't happen overnight but I'm looking forward to working with Frank McParland and the rest of the Academy staff to do the best job I can.

"There's a lot of work to be done and I will do whatever is asked of me. I'm just so pleased to be back."

After leaving Liverpool in February 1991, Dalglish had spells as manager of Blackburn Rovers and Newcastle United before a stint as director of football at Celtic, who he left in 2000.

"I am really pleased to have Kenny as a part of the staff," said Benitez.

"We were looking for someone who has a knowledge and a passion for the club and Kenny is the perfect choice.

"If you're looking for somebody to go around the world on behalf of the club then I don't know anybody better than Kenny.

"When you talk to him about players and football systems it's clear he has a lot of experience. That's good for the club and also for the young players coming through.

"We are changing things at the academy, we are bringing in new ideas and new people but we're keeping the spirit and the heart of the club.

"Kenny has played for the club, he's managed the club, he's done everything. He's a fantastic signing."