The Argentinean international is looking to leave the Etihad Stadium outfit after two successful seasons with City.
A move back to former club Corinthians looks the most likely outcome for the 27-year-old, who wants to relocate to South America to be closer to his family.
Replacing the former Manchester United striker will be no easy feat for manager Roberto Mancini, and Barry has insisted that they will respect the decision made by their captain.
“There has obviously been the odd chat about Carlos,” Barry told Sky Sports News.
“He has made it clear he is ready to leave and the players will respect his decision. It is down to the club to decide what fee they want for Carlos.
“We would be sad to lose him because he is a class player who has worked really hard for the club.
“If you believe what you read, then yes, he has played his last game. But he has been great for Manchester City. He has helped the club win its first trophy and he has always given 100 percent. We are grateful for that.”
Atletico Madrid striker Sergio Aguero has been mooted as a possible replacement for his international compatriot, and Barry believes that the 23-year-old would be a superb acquisition.
"Aguero is a very exciting player from what I have seen on TV. He is a class act. Names like that will excite fans and the players,” he said.
Barry was also quick to heap praise on City youth academy player John Guidetti, of whom he feels is ready to step up to the first team and challenge for a starting spot.
“John is young. He is a good player and I think he can have a good future at Manchester City,” the England international added on the Swedish youngster.
“He is strong. He is a typical English striker, even though he is Swedish. He has a good technique. He wants to improve.
“He will have time here. It is important that he continues to work well and continues to improve.”
By Ben McAleer
