Dalglish said: "Steve Gerrard is as good a midfield player as Liverpool have had through-out their history. He can be mentioned up there with Graeme Souness, Terry McDermott, Ray Kennedy and Ian Callaghan. He is right up there with the best of them."
"Him staying is a massive boost for the fans. They deserved a break, didn't they? The bottom line is that it would have been very, very serious for Liverpool if Steven Gerrard had gone.
"Last season but for him it would have been a lot worse than it was. On many occasions he carried the team forward on his own. In a footballing sense his departure would have been a massive blow.
"Also, the club is trying to bring in new investment and it would not have been a good sign. No one has come out and publicly stated anything about an offer for him but obviously there was innuendo and rumour.
"But I don't think there is any doubt as to just how much Steven Gerrard loves Liverpool Football Club. Even allowing for some truth in the speculation I don't think that undermines his feelings for Liverpool in any way."