The 35-year-old has made more than 700 senior appearances for Liverpool, and is second only to Ian Callaghan in the club's all-time appearance table.
"I'm making this announcement because I don't want the manager to be answering questions when I've already decided what I am going to do," he said.
"I will be fully committed between now and the end of the season to doing the very best for Liverpool Football Club, as I have done my entire career since joining aged just nine," said Carragher.
"It has been a privilege and an honour to represent this great club for as long as I have. There are many memories I want to share and people to thank, but now is not the time for that.
"I won't be making any further comment on this decision until the end of the season; all our focus and concentration should be on achieving the best possible finish in the league this season and trying to win the last remaining trophy [Europa League] we are competing in."