GOLD COAST (AFP) - Captain Vincent Kompany has hailed the signing of Raheem Sterling as "massive" for Manchester City as the club chases more trophies, saying his fearlessness sets him aside from his peers.

The 20-year-old Sterling became the most expensive English footballer in history earlier this week when he signed from Liverpool on a five-year contract worth an initial £44 million that could rise to £49 million (S$104 million).

He almost immediately got on a plane to hook up with his new team-mates in Australia, where City play a friendly on the Gold Coast on Saturday ahead of matches against Real Madrid and AS Roma in Melbourne.

"It's massive for us - 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," Kompany said on the club website.

"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."

City finished runners-up behind champions Chelsea last season and Kompany said the squad needed to be bolstered to challenge again with Sterling seen as the perfect fit.