A new era is dawning on the Tyneside club following a £305m takeover by Saudi-Arabian consortium Public Investment Fund (PIF).
The new owners are expected to get rid of manager Steve Bruce before their next league game against Tottenham Hotspurs this weekend and Gerrard has been tipped as one of his successors.
Gerrard has forged a reputation as one of the brightest up-and-coming managers in Europe after leading Rangers to a first Scottish league title in ten years last season.
The former Liverpool skipper will find it hard to turn down the chance to manage in the Premier League but Dalglish expects him to remain in Scotland for the time being.
Dalglish told the Sunday Post: “I’m not surprised that Steven Gerrard has been linked with the Newcastle United job. But the first thing to say here is that, right now, Steve Bruce is manager of the club. We all need to respect that.
“Speculation has been rife since the takeover by new owners, PIF from Saudi Arabia. I would have been taken aback had the name of the Rangers manager not been put out there as someone who may well be in their thoughts.
“The Toon Army are excited about the future, and there is a real feeling of optimism after the way things were for a number of years under the previous owner, Mike Ashley.
“Will they have Steven Gerrard in the dugout? He has been fantastic for Rangers. He won their first SPFL Premiership title for 10 years in a crucial season, given Celtic were going for 10 in a row.
“He also made some huge strides in European competition. That is why he is being linked with Newcastle United. Right now, though, Steven will not be paying any attention to what is going on at St James' Park.
“His only focus will be on Rangers and Saturday's massive game at home to Hearts. They defeated Hibs at Ibrox last week, and there will be a real determination to do the double over the Edinburgh clubs, who have both started the season well.”
