Manuel Pellegrini has said that Raheem Sterling is at the right club in order to continue improving.
The 20-year-old signed for Manchester City in the summer and has scored six goals so far this season.
"It is so difficult to know what would happen in the future if he had chosen another path at another club," Pellegrini told reporters.
"All I know is that playing here with David Silva, Sergio Aguero and Yaya Toure he will improve. He has very important potential as a young player.
"Liverpool also have very good players and if he had stayed he may well have improved there. But sometimes it doesn't depend on the club it depends more on the player."
Sterling will play against former club Liverpool for the first time on Saturday.
