Wirtz, 23, cost Liverpool an incredible £116 million in the summer of 2025. He has since scored just seven goals in his 55 games across all competitions.
The Germany international is yet to net once so far this season with his only goal contribution coming in the form of an assist in the 2-2 draw with Nottingham Forest.
He was anonymous once again as Liverpool earned a narrow 1-0 Premier League win over Bournemouth on Sunday (September 20).
Speaking on his self-titled podcast, Carragher has now called for Iraola to drop him from the starting eleven.
"That was one of the poorest I've ever seen him in a Liverpool shirt," he said.
"I've been critical of the fact that he hasn't got the numbers. But normally when you watch Wirtz, he's neat and tidy, he keeps possession, there's things that you like."
"He gets out of a tight situation where you're normally expecting your player to lose the ball. But the reason I worry is, I don't think Wirtz is in poor form since he came to Liverpool.
“I actually think what we're seeing is what he is. And I was worried for Wirtz probably 12 months ago. And maybe that was a little bit early to say that, but I didn't say it. It was just in the back of my head."
Carragher then argued that Wirtz’s inclusion isn’t worth more in-form stars playing out of position.
"The worry for Wirtz now is that his performances so far, or what he's given Liverpool, is so low," Carragher added.
"Where we were expecting him was to take Liverpool to another league title, to take Liverpool to a Champions League. The gap he's got to get to almost justify what people were expecting, I almost think is too big. You can't get there."
"I think going forward Iraola's got a decision to make here. Wirtz would not be in my Liverpool team."