The Liverpool winger is looking unlikely to stay at Anfield, but Wilkins believes his options may be limited.
Manuel Pellegrini’s side had a £25million plus bid rejected last week, per the BBC, and are now reported by the Guardian to have increased their offer by as much as £15million, although Liverpool remain adamant that they want £50million.
City are reported to be refusing to go as high as that amount for the England man, and Wilkins believes their latest offer will have scared off other clubs from making an approach.
“For other people to come in now would be extremely difficult,” he said.
“Even for the big boys in Spain, I think it would be too much for them at £40m, considering his age. He’s had an indifferent back end to the season it has to be said but there’s been a lot of pressure on the young guy as well.”
Sterling still has two years to run on his current deal at Anfield but is yet to agree a new deal with the club despite months of negotiations between them and his representatives.
He has come in for criticism from all angles in recent weeks over the affair, with his performances for both club and country taking a nosedive as a result.
While a move seems likely, Wilkins believes he should stay at Liverpool and win back supporters with his performances on the pitch, as Luis Suarez did two years ago.
“I personally would like to see him at Liverpool because I think he’ll play. He’s upset them immensely but you can always turn that round by performing on the pitch,” he added.