In May 1953, Carter was appointed Leeds United manager; he stated he was joining as manager only, although he did play in several friendly games. In his first two seasons, they finished 10th and 4th in Division 2. In May 1955, Carter turned down an offer to return to Derby County as manager. He was rewarded with a new 3-year contract to replace the 2 one year contracts he'd previously had. In 1956, Leeds United finished runners-up and were promoted to Division 1 after a nine-year absence. The following season, they finished 8th in the top flight with John Charles scoring 38 goals. He left for Juventus F.C. in the summer. The following season, without his goals, Leeds United finished 17th. On 9 May 1958, the chairman, Sam Bolton announced Carter's contract would not be renewed, saying,"it was with regret that the decision had been reached" and there were tears in his eyes when he said it. The decision was a shock to Carter.