By FOX SPORTS Staff
Carragher, who has made more than 700 senior appearances for the Reds, recently announced his decision to retire from professional football come the end of the current season.
The 35-year-old has won several major honours during his time at Anfield, including the Champions League, FA Cup and UEFA Super Cup, and was widely regarded as one of the best defenders of the game during his prime.
Gerrard, who along with Carragher has thus far only played for Liverpool in his career, admitted that he had known of his close friend's desire to retire for some time but failed in his attempt to coax another year out of the veteran defender.
"I've known a little bit longer than other people and I've tried just as hard as everyone else to try to keep him going for a bit longer," Gerrard told the official Liverpool website.
"But we have to respect his decision. He's had a fantastic career and he feels it's the right time to go out, at the end of the season.
"Hopefully there are still some big performances left in him before he goes.
"I could go on for a long time about him. People mention him alongside the likes of Hansen and Lawrenson, the best defenders that this club has ever had.
"For me, if he's not alongside them he's a little bit above them. That's the biggest compliment I can pay him.
"He's a wonderful player - at his peak, for two or three seasons he was one of the best defenders in the world."
Gerrard also claimed that a lack of playing time this season had contributed to Carragher's decision and confessed that he would miss having the former England international in the dressing room.
"He bounced a few things off me, but he's made the decision himself along with his family," Gerrard added.
"He's basically taken no notice of what I said because I was trying for him to push on for another year.
"At times this season it has been difficult for him, not being a regular starter - because he has been a starter since he made his debut. I can respect and understand his decision; we're all going to come to that moment in our careers.
"It's sad for me - I'm going to miss him more than anyone. It's going to be different for me, not having him alongside me as a vice-captain. It's tough.
"Everyone knows what we're going to miss on the playing side. Since I made my debut Jamie has been alongside me in the dressing room and been a close mate of mine.
"He has been through the journey with me as well. I've bounced a lot of things off him, highs and lows, and we've come through it all together.
"It's going to be different and no-one is going to miss Jamie more than me."
For now though, Liverpool are still in the fight for a spot in the top four, and Gerrard believes Carragher can still play a huge part in the Reds' season.
"You've seen in his last couple of performances against Arsenal and City, he has brought leadership into the back four," Gerrard concluded.
"He organises, he's a big voice and he's played very well.
"His last two performances have typified his career. He has come back in, hasn't played much of late and has been one of our best players."
Carragher may feature for Liverpool when they take on West Brom in their next Premier League fixture.