They are being linked with the likes of Jadon Sancho from Borussia Dortmund and Timo Werner from RB Leipzig.
But rather than pick between the two young attackers, Carragher thinks both could fit into Jurgen Klopp's squad for next season.
The Reds legend told Viasport after their 1-0 defeat to Atletico Madrid in the first leg of their last 16 clash in the Champions League: "Things can change very quickly.
"If you look at Tuesday night, the big problem for Liverpool is when one of those front three are not playing.
"Sadio Mane had to come off and the player they bring on in is Divock Origi, who is a Liverpool legend because of what happened last year at the Wanda Metropolitano, but it's not quite good enough for the best team in the world to be bringing that quality on.
"Liverpool do need a top attacking player to come in the summer. Sancho or Werner? I'll take both."