The Uruguayan frontman knocked Liverpool's Premier League title hopes by suggesting that the top spot was unreachable. However, his teammate believes there is still a chance.
"The last couple of years we have finished sixth and seventh so for us to get in the top four, we will be pleased with that this season," Carragher told talkSPORT.
"But at Christmas, if we are two or three points behind Manchester United or Manchester City, we are going to say we want to win the league.
"At this moment people will probably say we are in a race with Spurs and Arsenal [for fourth] because we are a little bit off Man City and Man United. But over the next month, if we can catch them up..."
The Merseyside club take on arch rivals Manchester United when the Premier League action resumes on October 15.