Dalglish, who is one of Liverpool’s greatest players and also managed the club in two spells, issued a statement about his diagnosis on Tuesday.
The 75-year-old former forward said he had mistakenly posted about his health on social media before later confirming the treatment.
“As my inadvertent social media post has indicated, I am currently undergoing treatment for cancer,” Dalglish said.
“Unlike my mobile phone use, the treatment is going well.
“Ideally this would have remained private because that’s the way it should be, but my useless technology skills have forced my hand.
“Obviously I did not mean to make this matter public so I would appreciate it if the privacy of my family and myself are respected.”
Liverpool sent their “support, best wishes and love” to Dalglish, adding: “The club would also like to underscore his request for privacy moving forward.”
Dalglish’s statement came just 24 hours after it was revealed that Liverpool star Kevin Keegan has stage four cancer.
Dalglish, who was signed from Celtic to replace Keegan in 1977, won six English titles and three European Cups as a member of Liverpool’s feared attack.
He took over as player-manager ahead of the 1985/86 campaign and won the English title and the FA Cup in his first season.
Dalglish, nicknamed “King Kenny” by Liverpool fans, led the club to the First Division title again in 1988 and 1990 and also lifted the 1989 FA Cup.
He was widely praised for his handling of the Hillsborough tragedy in 1989, which resulted in the deaths of 97 Liverpool fans.
But the emotional toll played a major role in Dalglish’s decision to resign as Liverpool manager in 1991.
He returned to management with Blackburn later that year and led them to the Premier League crown in 1995.
Dalglish won the League Cup in his second spell as Liverpool boss but was sacked in 2012 after just 16 months following a disappointing Premier League campaign.
He remains a regular at Liverpool games after becoming a non-executive director and had a stand named after him in 2018.
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