The Reds won the league that year and have not since, but under Ferguson, the Red Devils went on to lift the trophy 13 times following a power shift in English football.
Reflecting on his long-running rivalry with his compatriot, Dalglish said that he should have "kept [his] mouth shut" when there were calls for his fellow Scot's head at the beginning of his Old Trafford career.
"When Fergie first came to United, you lot were all shouting for him to get the sack and I was saying he deserved more time," The Mirror quotes Dalglish as saying.
"As a manager, he was hugely intent on being as successful as Liverpool had been for many years, and it didn't matter who was in his way.
"He was successful all right – and I don't think there's a lot wrong with how he went about it, either."
Liverpool take on Manchester United in the Premier League this weekend.