Liverpool manager Kenny Dalglish has been rewarded for reviving the team's fortunes with a three-year contract, the Premier League club said yesterday.

Dalglish took over the job from Roy Hodgson in January in a caretaker capacity with Liverpool 12th in the standings, four points above the relegation zone. It has climbed to fifth going into the final two games of the season and has a great chance of qualifying for the Europa League. Steve Clarke, Dalglish's first appointment, has also agreed a three-year contract as first-team coach.