The club's American owners will be at the last home match of the season against Tottenham on Sunday and intend to finalise matters with Dalglish before kick-off.
Dalglish's return to the role at Liverpool has been highly successful and, should Fenway Sports Group confirm his permanent return in the next 72 hours, it would give fans an enormous lift before a game that could secure their place in next season's Europa League.
Reversal of fortunes: Liverpool have flourished during Kenny Dalglish's second spell in charge at Anfield
Talks have been going on for months and FSG president Sam Kennedy said on April 9 that he was keen to reward the 60-year-old for helping to revive Liverpool.
FSG principal Henry has also lauded Dalglish's efforts on both his Facebook and Twitter accounts in recent months.
Once Dalglish's permanent role is confirmed, Liverpool will press ahead with their intensive summer recruitment policy. Aston Villa forward Ashley Young heads theirwanted list.
Red hot: Liverpool have won their last three games, scoring 13 goals in the process
Meanwhile, Liverpool midfielder Jay Spearing has received a late call-up to England's provisional squad for the Under 21 European Championship, after an injury to Bolton's Mark Davies.
England Under 21 coach Stuart Pearce must submit his 40-man squad list to UEFA today, before whittling it down to 23 on June 1.
Spearing has not yet represented England at any level, but signed a new three-year deal under Dalglish last week.
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