Kenny Dalglish is confident Jamie Carragher will continue to be a major influence on Liverpool's defence.

The Reds' vice-captain was an unused substitute during the 2-1 win at Chelsea after recovering from a calf injury that had ruled him out of the previous two encounters.

Daniel Agger and Martin Skrtel have both excelled in his absence but the boss is confident the No.23 will play a prominent role in the weeks ahead.

Dalglish said: "Carra has only been back a week after his calf injury. He's an important part of this football club and of this squad, now and going forward. He knows that and we know that.

"It's always a positive for anyone who is selected and it's a disappointment for those who aren't selected. You have to make decisions.

"We know what he's done for the football club. The respect and admiration he has here from myself and everyone else connected. He understands."

Last season Dalglish was faced with a similar situation when Carragher returned from a long-term shoulder injury to star in the 1-0 win at Stamford Bridge.

However, he feels the system deployed in London last weekend meant he could afford to be more cautious with the veteran defender.

The boss added: "We did it the time before. When we went to Chelsea last time we threw Carra straight back in when we played with three centre backs. He was brilliant. If we had played the same way he might have been thrown back in."

Meanwhile, Dalglish feels Liverpool's recent nine-match unbeaten run in all-competitions is partly down to rediscovering their mean streak in defence.

The Reds have conceded just 10 goals in 12 Barclays Premier League matches this season and the boss reckons the whole team deserve credit for making them hard to defeat.

"I think we defended well (at Chelsea)," said Dalglish. "Along with Man City, we now have the joint best defensive record in the league so we must be doing something right.

"It's not just Pepe (Reina) and the lads at the back who are responsible for that. It's everyone.

"The game was our ninth without defeat in all competitions. That's a good response to the losses at Stoke and Spurs back in September. We'll just keep going now and see how far we can stretch this run."

He continued: "It will be difficult against Man City, we know that. They have a fantastic array of players there, probably two for each position, if not more in some cases.

"They're top of the league and are playing very well.

"Not being in Europe means we have a week to prepare for their visit. City had a Champions League game on Tuesday night and might make a few changes to their line-up.

"We'd much rather be in Europe than not be. But for us it's not about having the time to get ready, it's how we use that time to prepare. We'll do that properly and see what the weekend brings."

Manchester City currently lead the Barclays Premier League after building a star-studded line-up courtesy of their owners' vast funds.

Dalglish concedes some teams may look on with envy at the millions Roberto Mancini has to spend but remains focused on achieving his own success at Anfield.

"If you're a football club in the fortunate position Manchester City are in, everyone is going to be delighted," he explained.

"They are exactly the same. They are in a position where they can compete financially for any player in the world, whether it's wages or transfer fee.

"You tell me a fan who wouldn't like their club to be doing that.

"It may make the transfer market skewed, but hasn't that always been the case? It's always been harder for some than for others.

"Nobody wouldn't want the financial strength they have got. We have to accept that, not worry about it."

Dalglish believes one way of competing at the top of the table is to foster a formidable spirit within his squad.

The Reds boss feels he now has a group who relish the competition for places and points to the celebrations following last week's second goal at Chelsea as an example of what it means to them all.

"Did you see Downing's face when Glen Johnson scored? Print that picture rather than me using any words to describe how he felt. It says more than I could say," said Dalglish.

"That is always the strength of the squad - those who aren't playing. That is where you get your success from.

"At the end of the day, it is hard for the ones who don't play. It is hard to keep them motivated and to keep them going. That is understandable.

"If they come in with really good attitudes when they are left out, it is helpful to everyone. Certainly, the 11 that started at Chelsea did very well. It was great for the three boys that came on as well. They have only been in the door two minutes.

"For them to come in with positive attitudes has shown their attitude and determination. It hasn't done anyone any harm.

"If they are not committed to playing, it is not going to be my problem - it is going to be their problem. We will go and get people who are determined to play.

"It is not pleasant but it is understandable that there is disappointment if you are not playing every game. But it is a long season and everyone is going to be given their chance."