That's according to talkSPORT pundit and former City star Trevor Sinclair, amid claims Sterling is considering moving on after seven seasons at the Etihad Stadium.
Sterling left Anfield for Man City back in 2015 in a deal worth £49million, following a contract dispute with Liverpool which led to widespread criticism of the player.
But now Sterling is approaching the final 12 months of his contract in Manchester, with talks surrounding an extension grinding to a halt.
The Daily Telegraph report there is a growing feeling the England international will leave the Premier League champions this summer, with Chelsea keeping tabs on him.
Speaking on talkSPORT Breakfast, Sinclair gave his thoughts on a potential blockbuster move back to Anfield for the 27-year-old, as the Reds seek to replace Sadio Mane who looks on his way to Bayern Munich.
"I think they'd have him," he told Alan Brazil and Ray Parlour.
"I think Liverpool fans would have him back because they've seen what he's won at Manchester City and the way that he's conducted himself.
"Obviously it was not the greatest way to leave the football club and there was a lot of animosity between the club, the fans and Raheem.
"But whether Raheem goes back there? He might be a little bit scared by the way he was treated when he left.
"But I think Liverpool would have him."
Should Sterling refuse any future offers to extend his stay at the Etihad, Europe's top sides would be expected to show an interest, with reports Bayern Munich, Real Madrid and Barcelona are all keen.
And Sinclair believes a move abroad, rather than to a direct domestic rival, would make the most sense for Man City.
"I can't see him going to a domestic rival now," he said. "Are Chelsea, are Tottenham domestic rivals? Yeah they are.
"Chelsea will always be because of the finances and the model there. Tottenham I think with the manager in place are going to be a rival.
"He'll have to go to a Champions League rival, which is Bayern Munich, Real Madrid. All the top teams will be interested in him."
Sinclair continued to give his backing to Sterling and revealed that the forward's stalled contract negotiations could be down to the player feeling undervalued by manager Pep Guardiola.
"I don't want to see it," he replied when asked if he could see Sterling depart the Etihad in the near future.
"I don't think he's valued enough off Pep if I'm being honest. He's got something that you can't coach - he's got ridiculous pace.
"I think he's proved time and time again that his character is sound. He's a family man, he's a role model and for me he's a world class player.
"But for whatever reason Pep doesn't hold him in that high regard, where potentially he'll let him go.
"He does miss chances, all top players miss chances, but he just gets back on the horse and goes again."