After 21 games of the season so far, Chelsea lead the way on 52 points.
The Blues hold a seven-point gap over nearest challengers Tottenham, with Liverpool a place further behind on goal difference alone.
Arsenal are in fourth on 44 points, and although Manchester City and Manchester United are just two and four points behind the Gunners respectively, Carragher believes neither side is capable of winning the title.
“I think four (teams can win it). I don’t think the Manchester clubs can,” he told Sky Sports’ Monday Night Football.
“I think two or three games into the season we felt they were the two who would battle for the league.
“They’re 10 and 12 points behind. City have still got to go to Chelsea. Goal difference is almost double for Chelsea, which is an extra point, so I only see Arsenal and above who can win the title.”