Forster set a new club record of 11 consecutive clean sheets during Celtic's 1-0 win over St Mirren on Sunday, which was their 13th consecutive Scottish Premiership win and maintained their unbeaten title defence so far.
Neil Lennon's side are cantering towards a third successive title in the absence of Rangers but former Celtic player and manager Dalglish feels they should be lauded despite the lack of serious competition.
"They would be as well presenting them with next year's trophy as well," said Dalglish, who was back in his native Glasgow to launch the 2014 Scottish FA Grassroots awards at last year's winner, Giffnock Soccer Academy.
"It's not their fault, the opposition is put in front of them and they have done it convincingly this year.
"They are winning games, keeping clean sheets and breaking records at both sides of the pitch. It has been fantastic for them.
"Once again, they acquitted themselves quite well for the Champions League, getting through to the league section. Although they got a bad result in Barcelona, they did well this year."
Dalglish feels Forster is a strong contender for the England squad for Brazil this summer.
"He has done fantastically well there, and I don't think he has done his World Cup chances any harm at all," the former Liverpool manager said.
"Eleven clean sheets is impressive wherever you are playing. People know Celtic are going to win the league. I don't think you could get a bet on it. So everyone knows they will win the league. It's not a criticism of anybody else, it's just a matter of fact.
"Celtic as a football club have enormous respect down south. They know the size of the football club, they know what it stands for and they know they have a fantastic history and recently have done well even qualifying for the Champions League."
While Lennon enjoyed another successful afternoon on Sunday, he had an uncomfortable Saturday at the football when he was pelted with missiles by Aberdeen fans in the Tynecastle directors' box during the Dons' League Cup semi-final win over St Johnstone.
Dalglish, who had a brief spell in the Celtic hotseat in 2000, said: "I never experienced anything like that. I don't know why I never or why Neil did, I just know I never had it.
"It's not acceptable, for anyone, for any manager. If it was a player they would be scrutinising the video tapes to get the culprits. Let's hope they do the same and punish them severely."
Lennon cast doubt over his future on Sunday as he admitted he might not go to other Scottish games to watch opposition and could decide he has had enough abuse following a catalogue of crimes committed against him.
Dalglish said: "I think the football is more important than that one incident. He has done a fantastic job for Celtic. I don't think anybody can dispute that."
Meanwhile, Leigh Griffiths got his first run-out in the green and white hoops following his deadline-day move from Wolves when he played 45 minutes of an under-20s win over Partick Thistle. Griffiths came close with a 30-yard free-kick while fellow newcomer Holmbert Fridjonsson scored in a 4-0 victory.
:: The 2014 Scottish FA Grassroots Awards, presented by McDonald's has opened for nominations. McDonald's Head of Scottish Football Kenny Dalglish is urging communities to nominate their grassroots heroes for one of the nine award categories. To nominate a football club or volunteer go to mcdonalds.co.uk/awards