The signing of Stewart Downing will take Dalglish’s spending to £100million since returning for a second spell as Liverpool boss.
The Reds’ strikeforce was boosted by the signing of Andy Carroll and Luis Suarez in January, and Downing is their third midfield recruit this summer after the arrival of Jordan Henderson and Charlie Adam.
Carragher feels the club’s new board is putting together a squad which has the same strength in depth as when he first broke into the first team.
“Every team looking to compete needs quality players in each position and that is what we are getting back towards.”
“It’s a terrific signing, there’s no doubt about that whatsoever,” Carragher said on the team’s pre-season tour of Asia.
“He’s been a top player in the Premier League for the last six or seven years and he will make a difference, with his ability to go outside and down the line to get quality crosses in.
“He was Aston Villa’s player of the year and he will give us something that we have been lacking, genuine quality on the left-hand side.
Downing has earned 27 England caps since coming through the Middlesbrough academy and Carragher is confident the 26-year-old will soon settle in at Anfield.
“I know him, so does Stevie (Gerrard),” he said. “He knows Andy Carroll and Johnno (Glen Johnson) from playing for England, so he is not going to be walking into a dressing room and be on his own.
“He will get a great welcome because he’s a good lad and a top player as well.”
Dutch forward Dirk Kuyt is also confident Liverpool are moving in the right direction and is looking forward to the new season with more anticipation than perhaps any other since signing from Feyenoord in 2006.