I'm delighted with my Liverpool squad, insists Dalglish

The Reds have been linked with a host of players over the last few weeks but speculation increased when it became known Henry would be making his first visit to the city for two months.

However, Dalglish, who has been in charge for less than a week after flying in from a holiday in the Persian Gulf to replace Roy Hodgson last Saturday, has been focusing on his current players as he readies himself for a third match in a week, at home to Everton tomorrow.

And although he has a meeting scheduled with Henry, he said he has no idea what would crop up.

"It would be rude not to talk to them considering they employ us," said the 59-year-old Scot. "We will be having a conversation but I don't know what will be on the agenda. We have not even had a conversation about transfers so there is no way I am going to pre-judge anything that is going to happen because if no players come in, you'll say I'm getting my P45, so I can't win.

"I am delighted with the players we have here and there is not any movement one way or the other about players."

Dalglish batted away questions about players the club were being linked with, joking: "I don't know who has written what because I haven't had time to look at papers – but it must be true.

"We will take it as it comes and as soon as we have anything to report to anyone we won't be trying to withhold news which we think is beneficial to everyone.

"We are not trying to be obtrusive in any way, it is just a fact."

Everton manager David Moyes says the gap between his team and Liverpool is as close as he can remember during his time in charge.

Moyes, working with just a fraction of the Anfield side's budget, has finished above Liverpool only once in his nine years at the Goodison Park helm.

His side have an excellent chance to improve on that record this season as they head into tomorrow's 215th Merseyside derby level with the Reds – albeit in mid-table.

The Toffees are improving after a sluggish start to the campaign while Liverpool remain a club in turmoil after changing their manager and losing twice in the past week.

Moyes is yet to oversee a win at Anfield but is hopeful that could change this weekend. The Scot said: "We have done well against the bigger sides and hopefully we can do it against Liverpool.

"The difference in the spending between the two clubs is a different world completely. But we have competed quite well with Liverpool, we have tried to be up there.

"The gap is probably as close now as it has ever been. Both clubs are probably not happy with their league positions – certainly we're not. We want to go there and try to take the points."