By SABC Sport
26th January 2024
The 56-year-old has admitted he is "running out of energy" having led the club to six major trophies since taking charge in October 2015.
Carragher, who made 737 appearances for the Reds, posted on X, formerly Twitter: "This news was always going to be a body blow to the club whenever it came.
"I just thought it would be another few years away. What a manager, what a man, let's go out with a bang Jurgen!"
Former Liverpool midfielder Ray Houghton said Klopp's Anfield achievements were "phenomenal".
"There was no sign whatsoever that he was going to make the decision that he's made and obviously, it's absolutely huge. What he's done for this club and his time being in charge, nothing short of phenomenal," Houghton told BBC Radio 5 Live.
"To get them back winning the league, getting them to major finals, getting that pride back in the football club, the joy of playing for Liverpool. It's been absolutely incredible and the football they've played has been a joy to watch. It's going to be one hell of a pair of shoes to fill."
Bayern Munich boss Thomas Tuchel, who succeeded Klopp when he left Dortmund ahead of joining Liverpool, said he was still trying to "process" the news when he was asked about it at his pre-match press conference on Friday, but added: "Kloppo is one of the best coaches of all time. He's always managed to influence an entire club at all his clubs. It's huge news."