Kenny Dalglish has returned to Liverpool in a coaching and ambassadorial role, the Premier League club said on Friday.
Widely regarded as the club's greatest player, the 58-year-old Dalglish will take on a senior role at the academy and also work with the commercial department.
Liverpool managing director Christian Purslow said:
"In our very first meeting (manager) Rafa (Benitez) 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," Purslow added on the Liverpool website.
As a player Dalglish won six League titles and three European Cups with Liverpool and after taking over as manager in 1985 he steered the club to its first domestic double in 1986.