Wenger is under pressure after going six years without silverware and this summer losing captain Cesc Fabregas without having yet brought in an established replacement.
Dalglish locks horns with Wenger at Emirates Stadium on Saturday lunchtime, and has offered his backing of the Frenchman, who he believes has been a fine manager of the Gunners since he took up the position in 1996.
He said: "For me, Arsene Wenger has been fantastic for the football club. When they were in a bit of trouble, he guided them through it.
"He has always been a fantastic seller of players (Emmanuel) Petit, (Marc) Overmars, (Thierry) Henry, (Patrick) Vieira, (Nicolas) Anelka. He has also got the best value for his club when they needed help financially.
"If Arsene was good for them then, when he was bringing in trophies, the only thing missing now is trophies. Arsenal have lost Cesc Fabregas, they look like they are losing Samir Nasri and have a couple of players suspended.
"But it will still be difficult. Whoever goes on the pitch for them will have the same principle. They will be formidable for us to play against. I think everybody appreciates and respects the way they play - not everyone can play that way."
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