Liverpool owners Fenway Sports Group have appointed Kenn Dalglish as first-team manager on a three-year contract.
The decision follows a run of 33 points in 16 Barclays Premier League games since Dalglish was put in temporary charge after the sacking of Roy Hodgson in January.
"I'm obviously delighted to be given the opportunity," Dalglish told the official Liverpool website.
"When we came back in January, there were no promises as to what to expect, so for me it was an ideal opportunity to prove I had something to offer."
Elsewhere, Darren Fletcher may be fit for Manchester United's visit to Blackburn on Saturday. United can clinch the Barclays Premier League title with a point at Ewood Park.
Micah Richards says Manchester City can match Tottenham and their debut Champions League season achievements.
Meanwhile, Arsene Wenger is confident Arsenal can finish above City by holding onto third place in the league. Wenger says his side will be stronger than ever next season.
Ben Foster's decision to take a break from international football to prolong his club career is said to have surprised England boss Fabio Capello.
Petr Cech expects a busy summer for Chelsea as speculation mounts that Carlo Ancelotti will be sacked. John Terry, however, has backed the Blues boss to stay at Stamford Bridge and overhaul the squad.
Stoke City captain Ryan Shawcross has issued a rallying cry to his troops as the FA Cup final with Manchester City edges closer.
And finally, Barcelona have sealed their third successive La Liga crown with two games to spare after a 1-1 draw with Levante last night.