The England international can be one of the world’s best if he stays clear of distractions, according to the striker.
The scintillating and versatile forward was named as last year’s Golden Boy and continues to impress for club and country.
With Sturridge now returning to the first-team fold, the pair will look to fire Brendan Rodgers’ men into top-four contention during the season’s business end.
The former Chelsea striker has been full of praise for his Reds team-mate and believes that he can be one of the best players in the world if he continues his current progress.
"I think if he continues to work hard and continues to believe in himself and has no distractions in his life – there’s none now and I hope that continues. He’s level headed and that’s what I like about him.
"I think he needs to get the credit he deserves for things he’s achieving because not many players are doing what he’s doing in the world.”
Sterling missed Liverpool’s dramatic 3-2 victory over Tottenham in midweek due to injury, while speculation over his future at Anfield has also arose in recent months.
The Jamaica-born star is reportedly being scouted by Real Madrid, while Rodgers has confirmed that the attacker has been offered a new bumper deal by the Merseyside club.
Liverpool will need both of their English stars to be fit and firing if they are to catch up with the division's frontrunners and qualify for next season's Champions League.