Jarvis has been in impressive form for Wolves this season and again caught the eye during Tuesday's Carling Cup defeat at Manchester United.
The 24-year-old delivered an electric second-half display at Old Trafford and had the travelling support beating the England drum.
McCarthy feels the former Gillingham youngster is well thought of by the England coaching staff and believes he merits an international call.
"He was terrific, he's a very important player for us," said McCarthy. "I don't think there's many better wingers around.
"I sat next to Fabio Capello's assistant Franco Baldini at Stoke on Sunday and he spoke highly of him.
"When the fans chant for him to play for England, they're not far away."