Chelsea battled from two goals down to beat West Ham 3-2 in the Premier League on Saturday with a stoppage-time Enzo Fernandez winner.
Arsenal closed out 2025 in emphatic fashion, smashing third-placed Aston Villa 4-1 on Tuesday to surge five points clear at the top of the Premier League.
Carragher said manager Arne Slot should build the team around Alexander Isak and Florian Wirtz.
Second-placed City would have reduced Arsenal's advantage to two points but instead were frustrated as their winning streak in all competitions was halted at eight.
Arne Slot planned to have a face-to-face meeting with Mohamed Salah on Friday ahead of Saturday's Premier League match against Brighton & Hove Albion.
Goals from Pedro Neto and Enzo Fernandez earned Chelsea a 2-0 victory at lowly Burnley on Saturday, a win that moved the Blues within three points of Premier League leaders Arsenal.
The Egypt forward has been left out of the club's Champions League match against Inter Milan.
Second-string Liverpool were thumped 3-0 by Crystal Palace as Ismaila Sarr struck twice for the visitors in the League Cup on Wednesday, booking the London side's spot in the quarter-finals and piling more misery on Arne Slot's struggling side.
Reigning Premier League champions Liverpool honour Portugal forward Diogo Jota, who died in a car crash alongside his brother Andre Silva last month, ahead of the season-opener kick-off against Bournemouth on Friday.
Premier League leaders Arsenal needed two own goals, the second deep in stoppage time, to scrape a 2-1 home win over bottom club Wolverhampton Wanderers and open a five-point gap, while earlier on Saturday Mohamed Salah put aside a tumultuous week to help Liverpool beat Brighton and Hove Albion 2-0.
Arsenal re-established their five-point lead at the top of the Premier League with a 2-0 home win against Brentford on Wednesday and for the second evening running the goals flowed as Aston Villa won 4-3 in a thriller at Brighton and Hove Albion.
A summary of Wednesday's action in the UEFA Champions League.
After Saturday's 2-1 win at Chelsea - their 12th in 13 league matches - Aston Villa have claimed 18 points from losing positions so far this season, more than any other team.
Manchester City seized the opportunity of Arsenal's 2-1 loss at Aston Villa earlier in the day to climb within two points of the leaders.
Virgil van Dijk scored with a stunning late header in the second minute of stoppage time to give Liverpool a 3-2 victory over Atletico Madrid in their opening group stage match of the Champions League, at Anfield, on Wednesday.
Liverpool talisman Mo Salah and substitute Federico Chiesa struck late goals as the Premier League champions began the defence of their title by beating Bournemouth 4-2 in a thriller on the opening night of the season at Anfield on Friday.
'The boys will be pleased not to lose but also definitely not happy we didn't win.'
Arsenal maintained a searing pace at the top of the Premier League with a straightforward 2-0 win at Burnley, while Liverpool snapped a dreadful four-match losing run with a 2-0 victory over Aston Villa to climb provisionally to third.
Bruno Fernandes milestone and late drama lift Manchester United past Chelsea with a chaotic 2-1 win over Chelsea at Old Trafford
Fresh off a dominant title-winning campaign, Liverpool kick off the new Premier League season on Friday as the team to beat, as the Reds have transitioned from Juergen Klopp's high-octane chaos to a more measured possession-based style under Arne Slot.
Bayern Munich made it 16 wins from 16 games this season to underline their credentials as early Champions League favourites, beating holders Paris St Germain 2-1 away as Luis Diaz scored two goals and was shown a red card on Tuesday.
'I was desperate for them (the fan to be here) of course, for all the fans around the world, for the fans here, but for us as well.'
Liverpool's Dominik Szoboszlai struck the first telling blow in the Premier League title race with a dazzling free kick late on giving his side a 1-0 victory over rivals Arsenal.
Diogo Jota, a Liverpool forward, and his younger brother Andre Silva were killed in a car accident in northwestern Spain on Thursday morning.
Liverpool's Salah named Premier League player of the season, Gravenberch best youngster
Key stats from Liverpool's season after they won their second Premier League title on Sunday and a record-equalling 20th English top-flight title...
IMAGES from the UEFA Champions League matches played on Wednesday
A wake is expected to take place at a chapel in Gondomar from 4 PM (1500 GMT) and a funeral on Saturday at a church nearby at 10 AM local time, Gondomar's mayor's office said.
The regional fire department of Castille-Leon, where Zamora is located, said on its website a car crashed shortly after midnight on Thursday and burst into flames, with two men, aged 28 and 26, found dead.
Glimpses from India and around the world that will make you smile and cry.
Carrying a red floral wreath bearing his shirt number, Diogo Jota's Liverpool teammates joined relatives and residents in a small Portuguese town on Saturday for the funeral of the soccer star.
Winning back-to-back titles for the first time since 1984 is likely to prove a rather more arduous challenge for Liverpool.
Liverpool continued their march towards the Premier League title with a 1-0 victory over Everton in a scrappy Merseyside derby as Diogo Jota slotted home the winner in the second half on Wednesday.
Liverpool roared back from a goal behind to thrash Tottenham Hotspur 5-1 and wrap up the English Premier League title in style.
Liverpool end victorious season with 1-1 draw with Crystal Palace
Images from Premier League matches played on Sunday.
Tottenham have not won any silverware since they beat Chelsea in the 2008 League Cup final.
Brighton & Hove Albion substitute Jack Hinshelwood struck a late winner as the hosts came from behind to grab a 3-2 victory over champions Liverpool.
A cat that invaded the famous Anfield turf for three minutes during Liverpool's 0-0 Premier League draw with Tottenham Hotspur on Monday has become an internet celebrity.
Arne Slot is the first to win the top flight in England where many of his compatriots have suffered dents to their reputations over the years.