Carragher misses the game having picked up his fifth booking of the season during the FA Cup win over Manchester United.
Elsewhere, Rafa Benitez must try to solve his side's goalscoring problems without striker Robbie Fowler.
Fowler won't be considered for selection against City due to a gentleman's agreement when he left the City of Manchester Stadium.
That means Peter Crouch is likely to partner Fernando Morientes.
Steven Gerrard will also return to the side, having been rested as a precaution for 80 minutes of the game in Lisbon.
Momo Sissoko's absence restricts Benitez's midfield options, and Gerrard, Didi Hamann and Xabi Alonso must now share the workload in the centre of the park for the rest of the season.
Sissoko's condition has improved, but it won't be clear until next week how serious his eye injury is.
Out-of-favour striker Djibril Cisse's hopes of going to the World Cup suffered a blow yesterday as he was left out of the French squad for the forthcoming friendly with Slovakia in Paris next Wednesday.