His form on Merseyside suffered towards the back end of last season as a result but his England captain thinks that is all behind him.
"You can see he's settled," Rooney said.
"He's happy, I'm sure. He's got the move he wanted. He's started the season excellently - settled in really well at City.
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Wayne Rooney (right) claims England team-mate Raheem Sterling is happy after leaving Liverpool
"When you are going through what he did, trying to leave Liverpool, it can be quite difficult, but he's a lot more relaxed and settled, which is good for [England]."
The pair are set to line up together as England host Switzerland in tonight's Euro 2016 qualifier at Wembley (7.45pm).
One more goal from the Manchester United striker would see him surpass Bobby Charlton and become the country's highest ever goalscorer.
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