The long-serving Liverpool defender announced his decision to end his playing career at the end of the current campaign, and Reds legend Dalglish believes that he will be hard to replace at Anfield.
"He knows better than anyone when is the right time to retire and he has chosen the end of this season but he will be sorely missed," Dalglish said in his column in The Mirror.
"He did his job as well as anybody who has ever done their job as a footballer. There is no higher praise than that.
"It was a bit of a surprise to me that he made his announcement when he did because he had just come through a couple of really tough games with great credit."
Dalglish managed Carragher during his second stint as Reds boss from January 2011 to June 2012, winning the 2012 League Cup in the process.