Falcao has been strongly linked with a switch to the Bernabeu in recent weeks as the Colombian attempts to negotiate a move away from Monaco.
Carvalho, who currently plays with Falcao in France, has claimed that the striker's arrival would make Madrid difficult to beat.
"I think Falcao is the missing piece that would make Madrid's attack perfect," Carvalho told AS.
"Cristiano [Ronaldo] is the best player in the world, [Gareth] Bale is very good and Falcao is the best striker.
"Cristiano, Bale and Falcao would be the most feared attacking trio in the history of football. I am a defender and I would not want to face them."
Falcao is currently recovering from a serious knee injury.