The most successful left-back in Liverpool history has urged Jamal Lewis not to give up on his Reds dream.
The Northern Ireland star is reported to have been heartbroken when Norwich turned down a £10m bid from the Premier League champions last week.
Norwich chief executive Stuart Webber expected the Anfield side to return with a bid nearer the £20m the Canaries value the 22-year-old at, but there was no counter offer.
The Reds instead signed Olympiakos defender Kostas Tsimikas as cover for Andrew Robertson.
"I certainly feel Jamal's pain," said Alan Kennedy, who won five League titles with Liverpool and scored the winning goal in two European Cup Finals.
"Robertson has done so well, but you need competition and, having seen Jamal a few times, I thought somebody like him would be a welcome addition, not just as back-up but who could push him and be a part of the first team.
"I would be telling Jamal and his representatives not to worry too much about it. He might need to go to another club in the meantime, but if he wants to play for Liverpool then go there and prove Liverpool wrong and show them you are worth the money.
"Liverpool have shown with the likes of Virgil van Dijk and Alisson in recent years that they are not afraid to bide their time for someone before eventually spending the money."
Kennedy says that Lewis should be buoyed by the interest shown by Liverpool rather than their reluctance to match Norwich's valuation.
"He didn't set the price," he added. "Liverpool were trying to get him for a reasonable price. I wouldn't say 'on the cheap' because if they think he's worth £10m then so be it, but that's more than they paid for Robertson also from a relegated club, in his case Hull.
"People think because Liverpool are champions that they have loads of money, but they have always wanted value for money.
"Liverpool could be taking a risk in their approach to Jamal. It could come back to haunt them if he continues to improve."
Kennedy joined Liverpool from Newcastle in 1978 for £330,000 - a British record for a full-back - and went on to become a cult figure at Anfield. He had an inauspicious start, however, struggling on his debut against Crystal Palace, leading boss Bob Paisley to joke that "they shot the wrong Kennedy".
"While Jamal has been unlucky, I was very lucky," he added. "I didn't have great relationships at Newcastle and was desperate to move on.
"Like now, Liverpool were League and European champions. It was between them and Leeds, but you cannot turn Liverpool down.
"Liverpool also signed Alan Hansen from Partick the season I arrived and he had to bide his time to get in the side, just like how Robertson was behind Alberto Moreno when he signed.
"We used just 14 players in the first season I was there, but now it's a squad game and you need two players for each position because you cannot afford to have weaknesses.
"Left-back has not been a problem for Liverpool, but it's one position where they didn't have a specialist replacement with James Milner filling in there. Jamal is good enough to play right at the top and would have been ideal.
"But he shouldn't give up hope. He's young enough to still be a part of Liverpool's future."