The young hitman made a record £35 million move from the Magpies to Merseyside during last season's winter transfer window, but has scored only four league goals since his big-money move to Anfield.
During the week the 22-year-old also missed a penalty in a League Cup clash against Chelsea, though Liverpool eventually won the tie 2-0.
"I think Andy Carroll’s a fantastic player and I don’t think Liverpool play to his strengths if I’m honest," Pardew said on the Sky Sports 'Goals on Sunday' programme.
"You give him the ball in the right areas and he’ll finish, no question."
"I watched them in the week, Liverpool, and they put two crosses into the box: Luiz fouled him for a penalty which wasn’t given, and then Alex handballed it and they got a penalty.
"But they just don’t deliver the sort of balls that he wants really. He’s good on the floor, he’s decent, he’s a decent striker but he’s not top level."
When quizzed as to whether Carroll needs to adapt to Liverpool's style of play or vice versa, Pardew said: "Well something’s got to help him I think if he wants to be a success there, because I think with the movement and the players they have he doesn’t get the deliveries in that box that brings out his strength.
"Andy’s going to feed on those situations. The modern era that we’re in there’s less crosses and there is more movement and there is more trickier play and Andy perhaps needs to adapt his game to fit in there."
The Newcastle boss added that in his opinion, left-back Jose Enrique, who also left the Toon for Liverpool, may not be ideally suited to provide the service from the flanks that the young hitman needs.
"I had an issue with Enrique putting the ball into the box for him [Carroll]," Pardew said. "He wants to feel his way in, find a route in there – don’t get me wrong he’s a fantastic player – but he wasn’t the type of full-back who wants to get the ball out of his feet and put it in the box."
Pardew is backing Carroll to make it to the European Championship in Poland and Ukraine.
"He’s a terrific player, I felt sorry for him when he was left out of the England squad," he said. "I still feel in the European Championships that he should be included, I believe he’s a potentially good player for England."
How do you stay up to date with football when on the move? With http://m.goal.com – your best source for mobile coverage of the beautiful game.