The 35-year-old has spent his entire 17-year career at Anfield, but he has revealed that he plans to hang up his boots at the end of the current campaign.
Carragher told the club's official website: "This will be my last season at Liverpool and my last as a professional footballer.
"I'm making this announcement now because I don't want the manager or the club to be answering questions on my future when I've already decided what I am going to do.
"I will be fully committed between now and the end of the season to doing the very best for Liverpool Football Club, as I've done my entire career since joining aged just nine-years-old."
Carragher has made a total of 723 appearances in all competitions for Liverpool, while also earning 38 caps for England.