The 24-year-old netted 18 goals to help Man City win the league with 100 points last season and Cole believes Sterling has what it takes to be one of the PL's all-time greats.
"You look at the positions he takes up and the amount of goals he scores now, and the age he's at, there's still extra levels to go," Cole said.
"We could be talking in five years about Raheem Sterling being one of the top Premier League players of all time, if he keeps on winning trophies and keeps on scoring goals.
"The great thing about him is, he's had a move from Liverpool to Manchester, there's been a lot of weight on his shoulders, but he's taken that on and he looks almost mentally indestructible at the moment.
"To get in that team is a feat in itself, but he's one of the top players in that team.
"We should feel lucky and proud that he's an English player and to have him in our national team. He's done so well and I'm pleased for him."