"I think Man City are looking very strong, Tottenham as well, Aston Villa and Everton are always up there as well so I think it will make it a little bit more exciting this year," Carragher told Sky Sports News.
"The top four places will certainly be up for grabs, but we want to make sure we are up there.
"But I think with the other teams coming involved hopefully they will take points off the other big sides as well."
Asked if he felt City could maintain their challenge throughout the season, Carragher said: "Oh yeah. They have got some great players, world-class players and I am sure they will be buying more in January so they are going to be a massive threat."