The attacker, who lifted four top-flight titles and the European Cup three times during his time at Anfield, won eight caps for the Three Lions and scored six times.
A member of England's Euro 1980 squad, Johnson - nicknamed 'Doc' - was a part of the Liverpool squad that dominated football at home and abroad under Bob Paisley.
Dalglish, who lined up alongside the forward in their 1-0 victory over Real Madrid in the 1981 European Cup Final, honoured his late team-mate with a statement on social media.
"Sad news about The "Doc"," he wrote on Twitter. "David was a really good guy, [a] great team-mate and hugely popular in the dressing room. Our condolences [go out] to all his family."
Sad news about The “Doc”. David was a really good guy, great team mate and hugely popular in the dressing room. Our condolences to all his family. RIP “DOC” YNWA pic.twitter.com/fOPsx9ZU29— Sir Kenny Dalglish (@kennethdalglish) November 23, 2022
Another former Reds team-mate, David Fairclough, also paid tribute, adding: "So sad to hear my great friend David Johnson has passed away today. [We] shared so many great moments and memories."
Liverpool itself also posted a note of condolence, stating: "The thoughts of everyone at the club are with David’s family and friends at this very sad time."
In his own words…the story of a Scouser who lived his dream.— Liverpool FC (@LFC) November 23, 2022
Rest in peace, Doc ❤️ pic.twitter.com/mmkn5tZ3X6
Johnson, who started his career at Merseyside rival Everton before a move to Ipswich Town, made his England debut in 1975 against Wales, scoring a brace in a 2-2 draw.
Rest in peace, Doc.— Liverpool FC (@LFC) November 23, 2022
We’re deeply saddened by the passing of David Johnson.
The thoughts of everyone at Liverpool Football Club are with David’s family and friends.
Five years later, he won his eighth and final cap in the Three Lions' Euro 1980 opener against Belgium, playing no further part in the tournament as his team fell short in Group 2.