The Uruguay international has been at the centre of controversy since moving to England, with a racism scandal involving Patrice Evra resulting in an eight-match ban for the South American.
With Paris Saint-Germain and Juventus lingering, Suarez stated that he is keen to stay with Liverpool, to the delight of Dalglish.
“It’s encouraging for everybody,” Dalglish stated to The Guardian.
“It might be bad news for other Premier League teams but it is encouraging for us. We’ve been delighted with him since he has been here.
“Luis has made a contribution every time he has stepped out on to the football pitch. He scores goals and creates goals. It’s great news that he is happy.
“But we don’t need to go through the full resume of his season, we are delighted with his statement and the content of it,” the Scot confessed.
With the Fenway Sports Group backed Reds expected to spend again in the summer, Dalglish admitted that specific targets had not been identified as yet.
“We have not got a clear picture in our mind of what we want. The players here have done fantastically well and if anyone is going to come in they will have to be a hell of a player to do better than what they have done.
“We have not had any discussions about funds. Someone else is in a position to discuss that with the owners and then they will come back and say there’s the budget,” he concluded.
Liverpool take on QPR at Loftus Road on Wednesday night.
By Gareth McKnight