Legends from the illustrious history of the club will take on an All Stars team at Anfield on May 14 to help raise funds for the Marina Dalglish Appeal's bid to build a new Radiotherapy Unit at University Hospital in Aintree.
Carragher will take up a coaching role with the All Stars side, alongside Phil Thompson and Ricky Tomlinson, while Dalglish will be accompanied by two fellow Anfield greats in taking charge of the Legends.
"I'll be in charge of one team and there will be a former 'international manager' in charge of the other," Dalglish told a press conference at Anfield.
"Alongside myself will be Roy Evans and hopefully Ronnie Moran. On the other bench will be Phil Thompson and Jamie Carragher, who will be given an introduction to a managerial career.
"A former England international manager will be in charge of their team in the shape of Mike Bassett (Ricky Tomlinson), who has assured me he will play 4-4-2."
Dalglish also said: "There are a lot of players coming from various places.
"We've got some of the older lads from 1989. Not just the Liverpool lads, but also Everton and Nottingham Forest players as well. I don't think they'll last too long though, so we've got some younger lads to come in behind them and also some celebrities have agreed to take part.
"We've got John Aldridge, Ian Rush, Peter Beardsley, Ronnie Whelan, Gary Gillespie, Jan Molby, Gary Ablett and Steve Staunton for the older players.
"The likes of Robbie Fowler, Jamie Redknapp, Steve McManaman, Gary McAllister and Don Hutchison are going to play too. They'll hopefully be more energetic and replace the older lads.
"We're also going to have Paul Harrison in goal, who lost his Dad and uncle at Hillsborough. Paul was a professional at Liverpool a few years ago and it means a lot to him to be involved."