The 20-year-old England international completed his big-money move from Liverpool to City on Tuesday and has already arrived Down Under as Manuel Pellegrini's men fine tune their preparations ahead of the new campaign.
Sterling's transfer, which could be worth up to £49million to his former employers, has been hailed as "very important" by City defender Kompany.
Silverware evaded Pellegrini's side in 2014-15 and their meek defence of the Barclays Premier League title saw them finish eight points behind eventual champions Chelsea.
But Kompany is hopeful that Sterling's acquisition can help bridge the gap when it comes to challenging for honours next term.
"It's massive for us," he told City's official website www.mcfc.co.uk.
"The biggest thing is that you've seen Sterling, especially the way he played the season before last, and he was one of the main reasons, along with (Luis) Suarez, that Liverpool played so well.
"It became more difficult for them when Suarez left but what you will find is that he will have this kind of structure at City already - I mean, we've got Kun (Sergio Aguero) up front, we've got (Wilfried) Bony, we've got so many players who will be able to link up with him; we will be able to make him better as well.
"We have great quality in the team but you can't compete nowadays if you don't improve every year.
"Other teams improve, we need to improve and getting him puts us one step closer to being this team which can win trophies again - it's very important for us."
Kompany is particularly grateful that the only time he will now have to face the pacey Sterling is in training.
As an opponent, the Belgian found Sterling's willing nature one of his biggest attributes.
"He's quick, he's very unpredictable; he's shown that he has especially great determination," Kompany added.
"You play against so many players with great quality but it's the fact that he's always willing to put in the extra yard.
"That makes it that extra bit difficult when you have a player with quality who is not shy to run and put his body on the line - that's a special player."
Source : PA
Source: PA