Kenny Dalglish has signed a three-year deal to become the permanent manager of Liverpool.
Dalglish signs Reds deal
Dalglish, who replaced Roy Hodgson in January initially on an interim basis until the end of the season, has masterminded a remarkable turnaround in fortunes for Liverpool which has seen only Chelsea pick up more points during Dalglish's time back at Anfield.
John W Henry and his Fenway Sports Group team flew into England this week to finalise the contract with Dalglish. First-team coach Steve Clarke, brought to the club by Dalglish, has also signed a three-year deal.
When Dalglish took the helm Liverpool were languishing in 12th in the table but he has led them up to fifth, and they can secure a place in the Europa League with a win at home to Tottenham Hotspur on Sunday.
Dalglish told the club's official website: "I said when I took the job on in January that I was just happy to help the club out for the remainder of the season. Now the owners have decided in their wisdom that they want me to stay a little longer and it's fantastic news for both myself and Steve Clarke that we have signed these contracts.
"Both John and Tom [Werner] have taken their time to assess what was best for the football club and bring in the people they wanted to take the club forward. They are both winners, but understand what the supporters want from a Liverpool side and the way that we should go about things. This is a unique football club and I'm delighted to have the opportunity to help build something special here again.
"I want to salute the efforts of all the players as they have been fantastic and thank everyone at the club for the welcome they have given me since I returned in January.
"I also want to pay tribute to Steve Clarke's input since we started working together as he has brought great experience and knowledge to the role. The players enjoy the training sessions, understand their relevance to our actual football games and have responded brilliantly."
Henry said: "Kenny is a legendary Liverpool figure both as a supremely gifted footballer and successful manager. Since returning in January he has shown extraordinary leadership and the ability to bring the best out of so many people associated with the club.
"It was obvious to us very early on that the atmosphere surrounding the club had been transformed by his presence. No one else could have produced such a response. Therefore, I'm delighted we have agreed to a new contract. We didn't need nor want to look elsewhere for the right man to manage the team.
"Working closely with him, we've seen first-hand his love for the club and his determination to do whatever is necessary to produce a winning side again. He has a unique relationship with our supporters and embodies everything that is special about the Liverpool way of doing things. Liverpool enjoys a global standing within the sport, but having Kenny in the dug-out will help us in our efforts to bring the best available talent to the club as we continue to move the club forward.
"I'm also pleased we have reached an agreement with Steve Clarke, as his contribution to Kenny's backroom team has been significant over the past four months."
Chairman Tom Werner added: "It was extremely important that we enjoyed a period of stability after some difficult times and Kenny has done a tremendous job over the last three months in bringing the whole club back together. It's clear how much the players have responded to his leadership, his man management skills and knowledge of the game and that sense of optimism now runs throughout the club.
"We have a clear vision of the way a Liverpool team should play and the way the club should be run and Kenny's inspirational effect on the senior squad and his keenness to involve and feature the younger players from our Academy set-up sits perfectly with that way of thinking."