The Uruguayan striker scored 82 goals in 133 appearances for the Reds, before securing a move to Barcelona in 2014.
Carragher also named two Spain internationals who he particularly enjoyed playing with.
“If you look what Luis Suarez has gone on to do for Barcelona, and also his country of Uruguay, helping them to win a Copa America and get to the semi-final of the 2010 World Cup in South Africa, it shows how far he took such a small country.
“Fernando Torres was such a brilliant striker and I played with some great strikers. And Xabi Alonso, if you look at what he went on to do with Spain. I played with some great players.”
Carragher also won 38 caps for England, playing in three major tournaments for the Three Lions.
“At international level it is difficult to say because I played with such great players for England and a lot of them were Manchester United players (unfortunately!) such as Paul Scholes and Rio Ferdinand,” Carragher continued.
“Frank Lampard and John Terry were also very good for England, and players that were labelled a ‘Golden Generation’, and we accept that, but you must also remember that there were many special players involved in the squads of our international opponents.
“There were some top England players around at that time and I believe the quality is better than the current England squad now, but this current England squad reached the semi-final of the 2018 World Cup in Russia, and that is something an excellent generation of England players could not quite achieve.”