Terry is departing Chelsea after over two decades with the club.
The England international has not decided on his next move and Express Sport understands he is wanted by clubs in China and America.
However, Carragher would prefer to see him stay in England.
John Terry is leaving Chelsea at the end of the season John Terry transfer odds: Where will Chelsea legend play next season? Mon, April 17, 2017
Click to reveal the most likely destinations for John Terry after he leaves Chelsea
Play slideshow Getty Images 1 of 7
Click to reveal the best odds for John Terry's next club
And the Liverpool legend thinks his old international team-mate still has plenty to offer in the top flight.
"I think he’s got a lot to offer as a player in the Premier League," Carragher told Sky Sports.
"You associate him as a one club man and I think it’s always sad when a player of that stature for a club puts a shirt on for someone else.
Jamie Carragher is hopeful John Terry will stay in the Premier League
"The fact he’s come out early with this announcement I see him playing for someone else next season.
"Hopefully for us it’s in the Premier League."
Get Quotes on Home Insurance