The 19-year-old spent last season out on loan at Hoffenheim as he took the bold step to head for Germany.
Nelson impressed during his time in the Bundesliga and he is now looking to make his mark in the Premier League for his boyhood club.
At rivals City, Sterling has served as an inspiration for the Arsenal teenager.
The England international star has coped professionally with the level of attention on him since bursting onto the scene at Liverpool.
It appears Sterling wants to see Nelson progress and eventually join him in the senior England squad.
Nelson was a shining light for England in their dismal Euro Under-21 Championship exit at the group stages.
And he has credited Sterling with helping guide him through the early stages of his career.
“Raheem is a role model to a lot of young lads coming through,” Nelson said.
“He gives me little message on Instagram, like keep going”
“He gives me little message on Instagram, like keep going.
“I was training with the England team a couple of times, and he is there, always giving encouragement.
“It is always good to have people like him in and around the England set-up to give you the pat on the back that you know you are doing well and good things are coming.”
Nelson had praise for another City player in the form of England Under-21 team-mate Phil Foden.
The Arsenal ace says he has a rapport with Foden as he revealed: “In training, we are always on the same team, small sided games, we have that chemistry.
“Everyone has the link-up play and it is a good thing for England, young talent coming through.”
Nelson will have his summer break now that England’s time at the tournament is over.
After that he is expected to feature in Arsenal’s pre-season programme.
In terms of his immediate future, Nelson suggests he isn’t considering another loan move, adding: “I am Arsenal through and through. I support Arsenal. All my family support Arsenal.
“There’s an interaction I have with the fans. It’s a good thing. They support a lot of the young talent coming up through Arsenal. It’s good.
“I just want to concentrate on the opportunities I get at Arsenal. When I do get to the club, then I can concentrate on that.
“I have got a bit bigger. I was playing at Arsenal when I was 17, when Arsene Wenger gave me my Premier League debut against Southampton, so I was very immature when I was playing.
“Now I have a more mature role about me. I look to play link-up play, one v ones, and I think I am more mature.”