Dalglish will also work as a club ambassador.
Reds managing director Christian Purslow told the club’s official website: “In our very first meeting Rafa and I agreed that we wanted to try and bring Kenny back to the club to help Rafa really drive forward our Academy which is at the heart of our plans for the future.
“We are delighted he has agreed to join us and I am sure he will be very successful in his new role back at the club.”
