The 35-year-old has been largely out-of-favour this season under new manager Brendan Rodgers, although the centre-half started Liverpool’s last two Premier League games at Arsenal and Manchester City.
The England international played under Roy Hodgson for six months at Anfield before the current Three Lions manager was replaced by Reds legend Kenny Dalglish in January 2011.
And Hodgson is confident Carragher, who retired from international football in 2007 before briefly returning for the 2010 World Cup campaign, will forge a promising management career.
“After retirement I’m sure he will march quickly up the coaching ladder and become one of the country’s top young coaches,” he said.
Hodgson added: “Having worked with Jamie Carragher it was always evident that he was a model professional who gave everything he had for club and country.
“He has had a fantastic career and will always be looked on very fondly by everyone associated with Liverpool Football Club.
“It was good to see him back in the team recently, I hope that between now and the end of the season he is able to add to his great total of appearances for the club.”