The 17-year-old England international was held under caution by Merseyside officers in relation to an incident on November 2, although no formal action was taken
The 17-year-old has enjoyed an excellent start to his first senior campaign after breaking into Brendan Rodgers' first-team squad and made his full England debut in the friendly against Sweden last week, becoming the youngest international in Reds history.
However, Sterling, who lives in the south Liverpool suburb of Woolton, was quizzed by Merseyside police under caution after he was said to have been involved in an assault on Friday, November 2, according to the Liverpool Echo.
A spokeswoman for Merseyside police said: "Merseyside Police can confirm that a 17-year-old male from the Woolton area was interviewed under caution, following a report of an assault on Friday 2 November.
"A 27-year-old woman received slight injuries during the incident in the Liverpool 8 [Toxteth] area. At this time, the investigation is ongoing and no formal action has been taken."
Liverpool declined to comment on Tuesday morning.
The Jamaican-born teenager, signed by Rafael Benitez from QPR in February 2010, was not held under arrest with police stating that their investigations are currently ongoing.