Sterling completed his move from Liverpool to City last week for £49 million - making him the most expensive English player in history and the club's record signing.
And the 20-year-old, who could make his City debut in their International Champions Cup clash against Roma in Melbourne on Tuesday, is relishing the opportunity to challenge on all fronts in Manchester.
"It was about the direction they are going - in recent years they have come a long way," Sterling told reporters. "They just seem like they are progressing and looking to dominate in England and in Europe.
"[The] Champions League is always a good thing to be involved in. As a young player you want to be challenging yourself in the best competitions, against the best players and with the best players.
"It's a competition that gives me an opportunity to show my ability on the biggest platform.
"This team has great players - it's a really good squad but players like [Sergio] Aguero, [David] Silva and Yaya [Toure] can only improve you."
--> And the 20-year-old, who could make his City debut in their International Champions Cup clash against Roma in Melbourne on Tuesday, is relishing the opportunity to challenge on all fronts in Manchester.
"It was about the direction they are going - in recent years they have come a long way," Sterling told reporters. "They just seem like they are progressing and looking to dominate in England and in Europe.
"[The] Champions League is always a good thing to be involved in. As a young player you want to be challenging yourself in the best competitions, against the best players and with the best players.
"It's a competition that gives me an opportunity to show my ability on the biggest platform.
"This team has great players - it's a really good squad but players like [Sergio] Aguero, [David] Silva and Yaya [Toure] can only improve you."
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