Carragher told Sky Sports News: "He (Suarez) is vital. He is one of the top players, not just in the Premier League, but in world football.
"We are desperate to keep him, I'm sure he will be staying, I think he loves it here and the fans love him.
"It would be a big surprise to me if he is not PFA Player of the Year. I think the Premier League has been good for him and he has been a star in the Premier League.
"It's not just Suarez, we have got lots of top players and we want to keep hold of them all. That is important for the club. Where we are in the league, it's important that we improve the squad and bring in some additions.
"Where we are at the moment is not where we want to be and the club next season will be looking to strengthen."