Dalglish: Reina is happy at Liverpool
Reina was the subject of a £23 million offer from Arsenal prior to the start of the season but stayed at Liverpool, only to see the club's woes deepen on the pitch under Roy Hodgson.
It has been suggested that both Manchester United and Arsenal, again, will show renewed interest in the Spain international, and Reina has notably been reluctant to pledge his long-term future to the club.
But with Liverpool's form improving drastically under Dalglish, and progress being achieved off the pitch, the interim boss is maintaining a positive outlook regarding the future of his No. 1 goalkeeper.
"I can't speak for Pepe Reina on how he sees it and believes it's going," Dalglish said. "I can only tell you about how me personally and the club as a whole feels about him. I have always believed he is one of the best in the Premiership, if not the best, maybe even in football. Whatever he feels about us going in the right direction or not is up to him, but he doesn't look too unhappy to me.
"With John [Henry] and Tom [Werner], the appointment of Damien [Comolli, director of football] and Ian Ayre [managing director], it's really settled the place. It's good to know who's going to be there, who is doing what. Obviously there's the outstanding issue with myself, which is the least important one, but everything will be sorted out.
"With the boys from the academy coming in, it's a great advert for the club and how it's going about its work in a really good manner, and you get the reward for that. There's no reason for any player to use an excuse for what's going on administratively at a football club as a reason for a bad performance."
Reports on Saturday morning suggest Dalglish has agreed terms on a permanent deal at Anfield and that the club will officially announce his appointment at the end of the season.
Dalglish has also been put forward for a knighthood by families of the 96 supporters who died at Hillsborough in 1989, who have asked Walton MP Steve Rotherham to put down an Early Day Motion requesting the Queen confer a knighthood on him.
"It is very flattering but I just go about my work, do the best I can," Dalglish said. "If somebody wants to do things that are outside my control that is up to them, but it is very flattering. But I don't think I will get carried away with it.''