The 19-year-old Reds star has established himself as a key member of the England squad this calendar year, and Bale thinks that Sterling can reach his full potential if he maintains his current form.
He told The Independent: "If you look at Raheem Sterling, I think he's shown what a good player he is. He's starting to perform more consistently.
"If he keeps working hard and doing what he's doing then he's going to keep progressing and the sky is his limit."
Liverpool host Aston Villa this evening.