The Mail on Sunday says Hodgson will gain from his long-standing friendship with former Anfield great Dalglish when he is recommended as the man to succeed Rafael Benitez as Liverpool manager.
Hodgson's friendship with Dalglish goes back to the Eighties when the Englishman was in charge at Malmo and the Scot was in the Liverpool hot seat.
Dalglish was a frequent visitor to the Swedish club and the pair have been firm friends ever since.
Chief executive Christian Purslow, handed the task along with Dalglish of finding a new manager, will need no persuading that the vastly experienced Hodgson is the right man to steer the club through turbulent waters, although other names being considered are Guus Hiddink, Marcello Lippi and Martin O'Neill.
Hodgson's appointment would also see Dalglish given a more prominent role than his present one in charge of the youth academy and as a club ambassador.