Dahlin was signed by Hodgson from Roma in a £4million in 1998 while the Liverpool boss was in charge at Blackburn.
“It is one of the biggest jobs in football but Roy will be able to handle it,” said Dahlin.
“He just loves coaching and his man-management is tremendous,” he said. “He has such enthusiasm and that is what the players at Liverpool will notice. I certainly owed him a lot. He signed me for Malmo and we had great success. We won titles and we also had good success in Europe.
“In one Champions League tie we beat Inter Milan. We won 1-0 at home and then had to go to the San Siro. The club was still part-time and we were not given much chance.
“But Roy’s approach made us believe in ourselves. We didn’t even talk about their players, it was all about how if we went about things the right way, we could win. We drew 1-1 and that was enough.”
Dahlin added: “He has also managed at Inter and been in charge of Switzerland and Finland. He has so much experience.
“He is one of the best managers in Europe.
“I’m sure he will be a success at Liverpool. He manages to get the best out of people and he has great skills in organising a team.”
