Dalglish was part of a group that worked to bring in a new manager at Anfield, following Rafael Benitez’s exit.
But Liverpool confirmed Roy Hodgson as the club’s new manager on Thursday.
“Kenny put his name forward for wanting the job and we appreciated the fact he was keen to do it but for us he was never a candidate and I explained that to him,” said Broughton.
“We see Kenny as having an excellent long-term future at this club.
“He is happy in his current ambassadorial role but we would like to build on that role – although we haven’t defined what that will be yet because it is for Roy and Kenny to work beyond that.”
