Everton are one of the Premier League’s form sides and they make the trip across Stanley Park fresh from a 1-0 victory over third-placed Tottenham Hotspur on Saturday.
David Moyes will be keen to see his side extend the run to 10 games as he prepares to celebrate a decade in charge at Goodison Park – but Dalglish has challenged his Liverpool side to tear up the form book and beat their local rivals.
“It’s 10 years since he went there, and he’s done a fantastic job, and it’s nine games undefeated,” said Dalglish.
“They’ve done very well and I think the city of Liverpool can be very proud of both clubs because they’re representing the city and their respective clubs very well.
“It’s a big game and one that both red and blue are looking forward to.
“Maybe if Everton are undefeated in nine, they’re looking forward to it a bit more optimistically than what they were before we played them at Goodison earlier in the season.
“We’ll just take it as it comes. Form has never won a game in a derby, only what happens on the day.
Liverpool suffered their third defeat in four league games at the weekend after losing 1-0 to Sunderland at the Stadium of Light on Saturday.
And Dalglish urged the Reds to respond to the recent setbacks in their hunt for Champions League football next season by closing the gap on fourth-placed Arsenal with victory against Everton.
“It depends what teams you’re playing, but certainly it’s not a record you expect from Liverpool,” added Dalglish.
“We’ll just keep going in the way we have done. What we’ve done has got us as far as we have. We don’t want to get into the habit of losing games, but in between the losses we’ve had a Carling Cup victory.
“It’s a big game tomorrow. Everybody is looking forward to it and we know how much it means to everyone.”
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news