Dalgish's affiliation with Liverpool began in 1977 when he moved to Merseyside from Celtic and is still running through to the present day as he currently holds the position of non-executive board director.
During his time playing for the club he made 515 appearances and scored 172 goals wining eight league championships, three European Cups, two FA Cups, five League Cups and one UEFA Super Cup.
He also made big contributions off the pitch to the club and the city of Liverpool because of the leadership role he played in the aftermath of the Hillsborough disaster and the support he and his family have provided over the years to the relatives of those who lost their lives.
Speaking on behalf of Fenway Sports Group, John W Henry said: “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. But 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 added “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."
The official renaming ceremony will take place later date this year with a date still be confirmed.
Liverpool chairman Tom Werner added: “We recognise this won’t sit comfortably with Kenny’s default position of humility and self-deprecation. But as we approach the club’s 125th anniversary year, now is the right time in the club’s illustrious history to leave this legacy. He and his family should know the privilege and honour is all ours – his name means so much to so many and its prominence at Anfield will enrich an already prestigious sporting cathedral.
“For decades he has served the club and the city, with the steadfast attitude that the collective always comes ahead of the individual. This announcement isn’t about singling him out – it’s about recognising that his name embodies values we all strive to honour and his name represents all that we are proud of when identifying ourselves as Liverpool Football Club.”