The Uruguayan striker has repeatedly claimed that he wants a move away from Anfield this summer, first citing incessant media pressure and later, a desire to play Champions League football.
Suarez has been banished from the Reds' squad by manager Brendan Rodgers, with the Northern Irishman revealing that the player had to apologise to his teammates before returning to the first team setup.
However, Dalglish thinks that Suarez can still play a part at Anfield next season, despite the respective stances of both the player and the club itself.
"I know that positions have become entrenched and a lot has been said by both sides but I don't think it's too late for Luis Suarez to return to the fold at Liverpool," Dalglish wrote in his column in The Mirror.
"It has already got to the point where Liverpool will find it very hard to replace Luis for this season, even if he were to be sold tomorrow. I think there's still room for optimism about the situation as far as Liverpool are concerned - as I said earlier, I cannot see Luis pulling on a Liverpool shirt and not giving everything in his body for the club.
"I'd like to see the club and the player call it quits and try to thrash something out for everyone's benefit. I don't think it's too late, but time will tell."
Dalglish was manager of the Reds when Suarez signed from Ajax in January 2011.