Forster has been in impressive form for Celtic so far this season and recently broke the club record for most clean sheets in a row, recording his 11th during Sunday's 1-0 win over St Mirren.
England number one Joe Hart has received criticism for his form over the course of the current campaign, and Dalglish believes that Forster's recent displays may have put him in with a shout of a place in the side.
"He has done fantastically well there, and I don't think he has done his World Cup chances any harm at all," he told reporters.
"Eleven clean sheets is impressive wherever you are playing. People know Celtic are going to win the league. I don't think you could get a bet on it. So everyone knows they will win the league. It's not a criticism of anybody else, it's just a matter of fact.
"Celtic as a football club have enormous respect down south. They know the size of the football club, they know what it stands for and they know they have a fantastic history and recently have done well even qualifying for the Champions League."
Forster has been a regular in Roy Hodgson's England squads since October 2012 and won his first senior cap in November of last year during a friendly defeat to Chile.