Kenny Dalglish has been rewarded for his performance as caretaker manager of Liverpool with a permanent three-year contract.
A league championship winner as a player and manager at the Anfield club, Dalglish, 60, took over on a temporary basis following the dismissal of Roy Hodgson on January 8.
The Scotsman has since guided the team from the lower reaches of the English Premier League to fifth place and into contention for a Europa League place.
After first resigning in 1991, he has now been re-appointed until 2014, with assistant manager Steve Clarke also agreeing a three-year permanent deal.
"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," Dalglish said.
"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."
"This is a unique football club and I'm delighted to have the opportunity to help build something special here again."
"I also want to pay tribute to Steve Clarke's input since we started working together ... the players enjoy the training sessions, understand their relevance to our actual football games and have responded brilliantly."
John W Henry, the principal of Liverpool owners Fenway Sports Group, believes the decision to appoint Dalglish on a permanent basis was an easy one given the team's considerable improvement during his tenure.
"Kenny is a legendary Liverpool figure both as a supremely gifted footballer and successful manager," Henry said.
"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."
"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."
