Ozil has struggled in recent years, despite signing on a £350,000-a-week contract from February 2018, and he has been one of many that have seen his side become increasingly regular participants in the Europa League, rather than the Champions League.
Carter played for a host of clubs in his career including his boyhood side Arsenal and fellow giants Liverpool. He thinks that Unai Emery should be shielded from blame for the Gunners' fifth-place finish and lack of silverware last season and he wants Ozil, among others, to be replaced.
"If he was honest, Ozil would know that his season last season was way below the level he should be," Carter told Goal, as he launched Liverpool FC's 2018/19 end of season book. "He has to either be moved on or he needs to step up next season and show he is a top player in Europe.
"You need some creativity in there, Ozil has to be moved on as he looks disinterested. At the moment, he is not showing that [he is interested]. If I was the manager and got offered good money for him, then I would take it straight away.
"I grew up an Arsenal fan. They have massive rebuilding problems. They need to recruit and recruit well. They have problems at the back, Sokratis and Mustafi are not good enough and need to go and Monreal is not a centre-half. He is a decent left back at best. Centre-back needs addressing.
"Midfield needs strengthening as losing Aaron Ramsey is complete madness to Juventus. Torreira, give him another chance; he is decent and tenacious. Xhaka is very inconsistent. I don’t think he is good enough for Arsenal.
"Lacazette and Aubameyang are brilliant and without their goals, I don’t know where Arsenal would be. For me though, I defend Unai Emery as he did a decent job last season apart from the defending in the Europa League final.
"It just shows how far they are behind. There’s a rebuilding programme at Arsenal that needs to happen. The recruitment needs to be spot on or they are in trouble."
By contrast, Torreira earned positive reviews at the beginning of his time in North London after moving for £26.4m from Sampdoria.
The 23-year-old's form ultimately declined as the season went on and his former manager Marco Giampaolo now targets a reunion with him after moving to Milan this summer. Carter hopes he resists his opportunity to play at the San Siro next season.
"I don’t think it was a perfect season for Torreira," he added. "He started the season very well but he seemed to tire as it went on. He has the World Cup so I think that took its toll later on in the season for him.
"I think what you get with Torreira is that he sticks his foot in, makes it difficult for the opposition and he is going to be tenacious. That’s what you get from him, he isn’t going to create a lot but he scored a great goal in the North London derby.
"He is not the most creative player. I would give him another year unless he is really unsettled and he wants to move to AC Milan.
"If he tells Unai Emery he wants to go back to Italy then Arsenal could let him go but then he would need replacing. You can’t sell everyone."