United vice-chairman Ed Woodward reportedly decided against the deal as Haaland's agent Mino Raiola was demanding too much and Carragher told The Telegraph that he thinks Woodward made the right call.
"Whoever signed Haaland from RB Salzburg knew they were not only getting an amazing young talent - they were also inviting the circus into town in the form of his representative, Mino Raiola," the former Liverpool defender said.
"United, like every club scouting the Norwegian teenager, had to weigh up the value of the player against the cost of the distracting influence of his high-profile advisor.
"No matter what Ole Gunnar Solskjaer said to Haaland to try to convince him to move to Old Trafford, it is a reasonable assumption the advice from Raiola mattered more to the player.
"It does not strike me Raiola would have been United's ally given recent history."