Suarez currently tops the Premier League scoring charts with 22 goals this season and is a strong contender, alongside Gareth Bale and Robin van Persie, for the PFA Player of the Year award.
That has led to suggestions that the Uruguay international could be on the move, despite only signing a new long-term deal in August, with Liverpool struggling to regain their place among the UEFA Champions League elite.
But Reds stalwart Carragher, who will bring the curtain down on his illustrious career when he hangs up his boots at the end of the current campaign, is confident Suarez will stay put and has tipped manager Brendan Rodgers to bring in new faces.
Carragher told Sky Sports News: "He (Suarez) is vital. He is one of the top players, not just in the Premier League, but in world football.
"We are desperate to keep him, I'm sure he will be staying, I think he loves it here and the fans love him.
"It would be a big surprise to me if he is not PFA Player of the Year. I think the Premier League has been good for him and he has been a star in the Premier League.
"It's not just Suarez, we have got lots of top players and we want to keep hold of them all. That is important for the club. Where we are in the league, it's important that we improve the squad and bring in some additions.
"Where we are at the moment is not where we want to be and the club next season will be looking to strengthen."