Sir Kenny Dalglish believes the correct decision has been made after the capacity at Hillsborough's Leppings Lane end was cut following fresh concerns over overcrowding in the stand.
Sheffield City Council, overseen by its Safety Advisory Group, last week determined the capacity in the stand should be reduced from 4,700 to 3,700 after incidents involving Newcastle United fans during their FA Cup third round tie at Sheffield Wednesday in January.
Magpies supporters had complained about crushing around the narrow Leppings Lane access tunnel and were critical of the crowd management that saw children and parents become upset.
