Haaland, 21, was this week pictured arriving in Manchester to finalise his contract with the Blues. Carragher believes that the decision to bring the forward to the Etihad is for one reason only.
He told Sky Sports' Overlap: “I think Haaland was brought in not to take City to another level. [Virgil] Van Dijk and Allison coming in took Liverpool to another level, City are already at that level so Haaland is not going to do that. Haaland is being brought in to make the difference in that Real Madrid game.
“That's why they are buying him, to make that difference in a big Champions League game. Maybe league games you can look at where they didn't win.
“Perhaps that game against Liverpool if that chance had fallen at the end falls to him rather than [Riyad] Mahrez they win the game. Maybe they are not in a fight with Liverpool to win the title, they win it by maybe seven or eight points.
“He is not going to make a massive difference to Manchester City because they are already that good anyway. But, he is needed or they will feel he is needed to try and take them to the Champions League.”
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