Former Premier League champions Chelsea will take on Bayern Munich in the highly-anticipated clash at the German's home ground, the Allianz Arena.
The Scotsman believes that this decision gives the Bundesliga team an "unfair" advantage over Roberto Di Matteo's side, who finished off Barcelona in the semi-final of the competition.
"UEFA say they have to book the venue 12 months in advance, or something like that, because they have to allow time to book the hotels," said Dalglish.
"But why? I don't think they should book it at the venue of a team which will be representing their country in the European Cup final. It's totally unfair. UEFA aren't going to change it, but it is a huge advantage for Bayern."
Meanwhile, Blues captain John Terry has been given the green light to lift the European trophy in the case of a Chelsea victory, despite the former England skipper's suspension from the match.