The gesture is also part of the club’s idea to rename a stand at the club’s stadium after him as part of their 125th year anniversary.
Fenway Sports Group, Liverpool’s owners, wanted to mark the special occasion in recognition of the contribution he has made on and off the field having made 515 appearances during his playing career, scoring 172 goals and winning three European Cups, before going on to have two successful spells as manager.
In a statement, John Henry, the principal owner of FSG, said of former Scotland international Kenny Dalglish: “It is testament to Liverpool’s history and status that we are not lacking in truly great individuals, whose names could easily grace a stand at Anfield.
“However in Kenny Dalglish we have a person who carries such immense significance to the fabric of this club, so it feels somewhat incumbent on us to recognise this in a manner that is befitting to the man.
“He is unique, not just to Liverpool, but to the game in England as a whole, having achieved greatness as a player and then enjoyed such success as a manager. His record and trophies won on both fronts speak for themselves.
“Kenny’s contribution to Liverpool goes beyond goals scored, points amassed and silverware placed in the cabinet. His values are Liverpool’s values – he represents what is best about this football club.
“The leadership and solace he gave to individuals, the club and city as it tried to come to terms with the trauma and tragedy of Hillsborough transcended sporting achievement.
“His name is synonymous with our club, with our home and the city of Liverpool. Now it will be as visible as it is palpable.”
The official renaming ceremony will take place later this year, with a date to be confirmed in due course. The Centenary Stand was previously known as The Kemlyn Road Stand until its expansion in 1992, when a second-tier was constructed.