Dalglish was appointed in early January when Roy Hodgson parted company with the club. His current contract would see him in the Anfield hot seat until the end of the season, with many calling for him to be made permanent boss.
Liverpool have now won their last three consecutive games, with three clean sheets, and smashed their club record for a transfer fee in bringing in £35million striker Andy Carroll.
Henry is delighted with results so far.
“It’s still early but in retrospect you could not have made, in our case it was very fortunate, but we could not have made a better choice,” said Henry. “I know he, for a long time now, has wanted to be in this position, so it’s a great thing for the club, for Kenny and for us.”
Henry also hinted that Fenway Sports Group have plans to redevelop the current Anfield stadium, rather than build a new one of nearby Stanley Park.
“The Kop is unrivalled,” he added. “The atmosphere, I was really surprised because we’ve heard so much about needing a new stadium.
“We were surprised at how beautiful Anfield was both viewing it as an empty stadium and then with the first game. It would be hard to replicate that feeling anywhere else.”