However, the former Liverpool player and manager admits that he cannot see the Scottish giants ever being accepted into the English top flight.
The Hoops and the Blues have dominated Scottish football for decades and the idea of integrating the two teams into football south of the border has been touted for just as long.
"At the end of the day, they would enhance the quality of the Premier League," Dalglish told The Mirror.
"But then again that doesn't mean that they will actually get in because I don't see how any of the clubs in England would vote for them to come in. You wouldn't vote them in because it's two teams that are going to cause you problems.
"When you're worried about avoiding relegation in that particular league or whether you're worried about promotion, those two teams would add strength to that argument so if you're in opposition to them you wouldn't want them.
"But then like I said at the beginning, they would definitely enhance the Premier League but I don't know if we'll get there."
Celtic average crowds of over 58,000 in the Scottish Premiership, while Rangers bring in just under 50,000 for every match.