The 64-year-old spent a difficult six-month spell at Liverpool which came to an end in January 2011 after just 34 games in charge – the shortest reign of any Reds manager.
Dalglish, who replaced Hodgson, paid credit to the West Brom boss’ efforts during his time at the Merseyside club, and praised his positive impact at the Hawthorns.
“It will be good to see Roy [Hodgson],” said Dalglish. “To see him back at Anfield – obviously we’ve played them down there already – will be good and I’m sure he’ll get a warm reception from the supporters.
“He’s a man with real integrity and dignity and he tried his best for this football club. I’m sure the supporters will respect that.
“As a person I respect him tremendously so he’ll get a warm welcome from us.
“He’s done very well [at West Brom]. He’s a good coach and manager. He’s got a lot of experience behind him. Last year at West Brom he kept them up, this year they’ve easily stayed up.”
Liverpool set up a mouth-watering FA Cup final against Chelsea courtesy of the Reds’ 2-1 victory over Everton at Wembley last Saturday.
And Dalglish hopes Liverpool’s success in the competition can inspire his side to victory in their remaining five games of the season – the Reds are 13 points behind fourth place Tottenham Hotspur.
“There is always a good feel around and about the football club,” added Dalglish.
“Melwood has always been a nice place to come and work since I’ve come in and the positive result we got on Saturday puts an extra couple of centimetres on people’s smiles.
“We’ve got our reward for winning in the semi-final against Everton and we want to keep that momentum going.
“We want to try and play as well as we possibly can and get as positive results as we possibly can between now and the end of the season.
“We want the people to be happy and the way we can do that is to work tremendously hard, prepare ourselves as properly as we possibly can and make sure we’re in the right frame of mind for the games coming up.
“I don’t think the boys as a group will get carried away because we’ve got to a final of the FA Cup.
“They should be delighted with their achievement but they’ve got to brush themselves down and get ready for another good performance on Sunday.”
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