The Uruguay international, who signed a fresh long-term contract at Anfield last year, has been heavily linked with a move to Bundesliga outfit Bayern Munich.
Despite the constant speculation, the 26-year-old has insisted that he is happy with life at the Premier League outfit.
"[Suarez] is vital," Carragher told Sky Sports News. "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'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."
Suarez, who joined the Reds from Ajax in January 2011, is the Premier League's current top scorer with 22 goals.