The Frenchman has been heavily linked with a move to Real Madrid in recent months but Carragher believes Liverpool would be a better fit for the World Cup winner.
Kylian Mbappe stole the spotlight after scoring an incredible hat-trick at Camp Nou against Barcelona in the first leg of PSG's Champions League Round of 16 tie.
PSG ran out 4-1 winners over Barcelona thanks to Mbappe's hat-trick and a header from Moise Kean. The comfortable away win has put them in pole position to advance to the quarter-finals of Europe's elite competition.
With PSG superstar Neymar ruled out with an injury, Kylian Mbappe has embraced a leading role for Mauricio Pochettino's side.
The French forward rose to prominence at Monaco in the 2016-17 season, during which he won the Ligue 1 title with the club.
Kylian Mbappe shone at the 2018 FIFA World Cup, leading France to the trophy and winning the FIFA World Cup Best Young Player award. He then moved to PSG in a deal worth €180 million, and has led the French giants to three Ligue 1 titles and a Champions League final.
Most fans and pundits believe that Mbappe's future lies away from PSG, as the French league does not pose enough of a challenge for the 22-year-old. Real Madrid are reportedly favorites to land the Frenchman.
Jamie Carragher, however, believes that Kylian Mbappe's playing style might be more suited to Liverpool, and hopes his former club try to sign the PSG star.
'I'm not joking, it was based on the fact that Liverpool thought they had a decent chance of getting Mbappe when he was at Monaco. I know Jurgen Klopp had spoken to him then and I'm sure other clubs had at the time," Carragher told CBS Sports.
Jamie Carragher believes Liverpool is the perfect destination for Kylian Mbappe
Jamie Carragher claims that if Kylian Mbappe wishes to play in England's Premier League, Jurgen Klopp's Liverpool are the best option for the striker. However, the former England and Liverpool defender admitted he believes Mbappe will play for Real Madrid at some point in his career.
"When Liverpool were in the Champions League final and won the Champions League a couple of years ago, I think anyone watching Liverpool there with Jurgen Klopp and the support of Anfield, if you're ever going to go to a club in England before you go to Real Madrid," said Carragher.
'I think he will, guaranteed, play for Real Madrid at some stage in his career but I'd always feel that maybe Liverpool is that perfect destination for a player like that before you make that next step," signed off Jamie Carragher.