Kenny Dalglish will stay on as Liverpool manager next season – but the Scot will have his transfer budget cut drastically, according to The Mirror.


Liverpool have spent over £100 million in the last 18 months, bringing in the likes of Andy Carroll, Jordan Henderson and Luis Suarez.


Dalglish has achieved mixed results from his dealings in the transfer market, with Suarez proving an instant hit while the likes of Carroll and Henderson have struggled to turn around the Reds inconsistent form.

Director of football Damien Comolli reportedly paid the price for his part in Liverpool's high-profile transfer failings earlier this season after it was revealed he would leave the Anfield club.


Liverpool go into their final league game of the season against Swansea at the Liberty Stadium needing rivals Everton to slip up in order to secure seventh place - a position well off the top four finish they had targeted at the start of the season.


Dalglish has come in for criticism following his side's poor league form that was compounded by defeat in the FA Cup final, but The Mirror report that Liverpool’s owners have no intention of dumping the Scot, who guided the Reds to the League Cup in February, in the summer.


The paper also reports that he will not have the freedom to splash the cash in order to help remedy their league woes, despite Dalglish insisting otherwise last month.


Reports surfaced in April that the former Blackburn boss would have only around £20 million to spend this summer, but The Mirror reports that Fenway Sports Group, the club’s owners, are encouraging Dalglish to chase cheap signings and free agents.

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