The £49m summer signing from Liverpool is poised to make his home debut as champions Chelsea visit the Etihad Stadium in the Premier League on Sunday, live on Sky Sports 1.
Sterling spurned a good chance to score in City's first game of the season, Monday's 3-0 win at West Brom, but Pellegrini has no doubt his quality will soon show.
He said: "I think that he will be a very dangerous player. Maybe we were criticised for the amount we paid for him but I am sure he will demonstrate during the year, especially against the big teams, why he was valued so much."
Sterling excelled as Liverpool ran City close in the battle for the title in 2014. He flourished alongside the influential Luis Suarez and Pellegrini thinks City's creative players will similarly bring the best out of the 20-year-old.
Sterling spurned a good chance to score in City's first game of the season, Monday's 3-0 win at West Brom, but Pellegrini has no doubt his quality will soon show.
Sterling excelled as Liverpool ran City close in the battle for the title in 2014. He flourished alongside the influential Luis Suarez and Pellegrini thinks City's creative players will similarly bring the best out of the 20-year-old.
He added: "It is always important for young players to play with good players who can improve them, the same way he did with Luis Suarez or (Steven) Gerrard for Liverpool.
"Here he will play David Silva, Sergio Aguero, Yaya Toure, with players that will make him improve in a lot of ways. Young players always learn from important players. It is very important for them to play with him.
"I think last year he scored 11 in all competitions. I am sure this season he will improve."
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