Gerrard was heralded as Liverpool's "greatest player ever" by team-mate Carragher as the England captain was honoured by the Football Writers' Association at a gala tribute dinner in London.
"I think we are in the presence of the greatest player ever to play for Liverpool," said Carragher.
"People will say I am biased because we are good friends and because of the trophies we have won together, but it is a fair accolade to give him.
"There are guys like Kenny [Dalglish], Graeme Souness, Ian Rush, all world-class players, but the difference was they were in a world-class team - and Stevie has not played in a world-class team."
Carragher added: "Stevie's one strength is he has no weakness, he can run, tackle pass and score goals.
"Football is a team game, but special players do special things at special times, and that is Steven Gerrard."