Liverpool boss Brendan Rodgers has confirmed he will hold talks with Gerrard over a new contract and is convinced he can play into his late 30s.
Carragher said: "I'm sure Stevie will sign a contract and finish his career at Liverpool the way I've done.
"There is no doubt about that. I'm sure he'll sit down and sort it out in the next couple of months.
"Steve will be finishing his career at Liverpool. He is 'captain fantastic' every week.
"It's not just against Villa. He's been doing it for years, scoring at one end, saving at the other."