The Reds have beaten both Arsenal and Spurs to the signature of the former Chelsea midfielder, who has agreed a four-year deal at Anfield worth around £19m, subject to a medical.
Carragher is delighted with the new arrival, telling the club's website: "It's great news and it is a message that Liverpool mean business. We have signed a top international player who has been really important for Chelsea.
"A lot of clubs wanted to sign him but it is a real coup that he has chosen to come here and you have got to give the manager and the board a pat on the back for convincing him to come here."
The defender added: "Every supporter that I have spoken to is absolutely delighted and all the players are the same - it's given everyone a boost, just at the right time.
"It has been a long summer and we have been in a transitional period but now the World Cup is out of the way, we can start to look forward again.
"Joe is a player who has the ability to get supporters off their seats and I've no doubt he will do that here; the fact we have got him has given everyone a boost around the city.
"It's good news again and, hopefully, there will be more to come. It's the kind of signing that we needed to make."
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