Carragher, who has recently hinted that he may retire within the next two years, has expressed his desire to be involved with football after his playing days are over.
If here were to make the switch into management, 21-year-old Kelly believes that Carragher would make a great Liverpool boss.
"It's a long way off but Jamie has got all the attributes to become our manager," said Kelly. "He'd get the best out of players and wouldn't settle for second best.
"I look forward to seeing such a massive player for the club go into management."
Liverpool face Manchester United at Anfield on Saturday.