Canary old boy Paul Dalglish believes his former manager has 'a real talent' on his hands in the shape of Liverpool's Spanish starlet, Dani Pacheco.

Alongside Wolves striker Sam Vokes, the 20-year-old Under-21 international joined Norwich City on loan from Anfield until the end of the season – one the Canaries hope will finish with a prized place in the Premier League.

Dalglish, whose father and Reds legend Kenny returned to the Liverpool hot seat earlier this season, played under City boss Paul Lambert in his first job at Scottish side Livingston.

And the 34-year-old feels the excitement surrounding the arrival of former Barcelona forward Pacheco will be justified once he takes to the pitch, possibly for the arrival of Scunthorpe United at Carrow Road on April 2.

'I think Norwich fans should get really excited about this young talent, because I certainly get excited whenever I see him play,' said Dalglish, who made 48 appearances for City between 1999-2002, scoring twice.

'I'm a big admirer and I think the majority of Liverpool fans are admirers of his, and there will be a lot of them keeping a close eye on how he does.

'They all believe in this kid and they want him to progress and be a first-team player because of what they've seen in pre-season games and his stints in the first team. Norwich have certainly got a very talented player, a real talent.'

Pacheco has made a handful of appearances for Liverpool this season in the Europa League, Premier League and Carling Cup.

Despite Pacheco's small build, Dalglish, a regular observer of the Reds' reserve and youth teams, is confident the forward will handle the rigours of Championship football – especially given City's style of play.

'Gianfranco Zola, Messi, they're not the biggest but I don't think it matters if you've got the quality,' said Dalglish, who coached North American Soccer League side FC Tampa Bay last season before setting up a youth football academy in Austin, Texas.

'He's a strong little boy. He's short but when your touch is as good as his, it gets you out of a lot more trouble than when you are big and strong.

'He is a second striker, likes playing off another striker and can probably play on the outside of a front three as well. He likes playing in the hole too and is very successful when he does it, if he's playing in a footballing team.

'I think any team in the Championship would have taken Dani and Liverpool looked hard at the style teams were playing and, with Norwich playing such an attractive style of football, he had to go to a team that does that because he is a terrific footballer.

'Liverpool have just gone out and spent �30m and �20m on two centre-forwards, and to expect Dani to go and compete with them is an unrealistic expectation.

'But there's no doubting players like him have got immense potential and have what it takes to become top players.'

After almost two years out of the game, it was Lambert who brought Dalglish back into the football fray when he took over at Livingston – where the former City man played alongside a young Wes Hoolahan.

And even in his first managerial position, Dalglish felt the effects of a man who has turned City's fortunes around so drastically.

'He's a great man, I loved playing for him and I'll be forever grateful,' said Dalglish. 'When I had retired he gave me a chance to play at a decent level again in the Premier League in Scotland.

'It was from him that I was pretty successful at the end of my career, going on to Hibs and then the MLS and winning two championships in America.

'At a young age my career went off the rails really. I enjoyed my time at Norwich and after that I never really had that hunger – and Paul gave me the opportunity to come back and it was because of him that I got the hunger back.

'My time at Norwich didn't go as well as I would have liked but it's a great city with great people and I've got really fond memories.

'I love to see them doing well because it's a great atmosphere when it's full and it seems to be bouncing at the moment. There's a real buzz about the place and it's great to see.

'And Paul Lambert deserves all the credit for it, because it hasn't happened by luck.'