The Liverpool centre-half, who played in four of England's five games at the World Cup last year, has made just five appearances under Steve McClaren.
He has never started in his favoured position in a back four, even when John Terry and Rio Ferdinand have been injured, despite winning rave reviews as he helped his club to a second Champions League final appearance in three years.
His likely decision to retire from international football, which mirrors Paul Scholes' self-imposed England exile,was brought to a head when he was left out of the side who defeated Estonia 3-0 in Tallinn.
A source close to the 29-year-old said last night: "Jamie does not want to sound like a big-time Charlie. He just feels that at this stage of his career it would be better if he concentrated his efforts on helping Liverpool become the No 1 team in England again.
"He has always regarded it as a tremendous honour to represent his country and he has happy memories of pulling on the shirt. But things have to end some time and he thinks this might be a good time to bow out."
Against Estonia, the euphoria surrounding David Beckham's England return overshadowed Carragher's huge disappointment at being dropped to the bench.
He had accepted the fact he was behind the likes of Terry, Ferdinand and Jonathan Woodgate in the central defensive pecking order but, in a match when both Ferdinand and Woodgate were unavailable, McClaren's preference for the injuryprone Ledley King came as a bitter personal blow.
The situation was made worse when the England manager picked Wes Brown at right-back, a role Carragher has filled in the absence through injury of Gary Neville.
McClaren, having failed to talk Scholes into returning to the international scene, has not given up on persuading Carragher to reverse his decision and has been in constant touch with him. He will seek to meet the player on his return, before he names the squad for the friendly against Germany on August 22 at Wembley.
Carragher has collected 34 England caps since he made his debut as a substitute against Hungary in April 1999, ironically in the game that also signalled Brown's nternational arrival. In that time, the Anfield favourite has earned a reputation for being a wholehearted player who rarely let the side down, despite being asked to play all across the back four.
Eriksson once tried him as a holding midfield player, but McClaren has used him at right-back, left-back and as one of three centre-halves in a 3-5-2 formation, as well as, briefly, in his favoured position.
Carragher won 27 caps during Eriksson's reign, but his appearances have been restricted to just three starts since McClaren took over.