"He (Sterling) is going to make history. He's technically very gifted and he's got a lot more to come," Silva told British media ahead of Monday's Premier League clash against Arsenal.
"He has only just turned 21, so he is going to improve and get more experience, and read the games a lot better.
"He has a lot more time to prove how good he is -- and he is pretty good already. It's not just his ability either. He has a great personality that is going to help him a lot."
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City bolstered their squad over the summer by bringing in big money signings, including Sterling and Belgian Kevin De Bruyne, after a disappointing title defence last season when they finished eight points behind champions Chelsea at second.
"It was very pleasing to see the club bring in players of the quality of Kevin De Bruyne and Raheem Sterling," Silva added. "They are young players, fresh players and they bring that on to the pitch, too."
City sit third in the table but head into Monday night's top-of-the-table clash with second-placed Arsenal having failed to win in their last four away games.
Victory at the Emirates Stadium would ensure they leapfrog Arsenal to second place behind Leicester City, heading into the festive period.
(Reporting by Nayan Das in Bengaluru; editing by Sudipto Ganguly)
