The 24-year-old, who has scored 20 Premier League goals this season, believes he would have found opportunities hard to come by had he remained at the Etihad Stadium
Sturridge moved to Chelsea in 2012 but endured a frustrating four-year spell at Stamford Bridge before moving to Anfield in January 2013.
Since arriving on Merseyside the 24-year-old has enjoyed the form of his life, scoring 20 Premier League goals this season - a figure only bettered by strike partner Luis Suarez.
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As his side prepare to host City in a potential Premier League title decider on Sunday, Sturridge believes he could never have achieved the same success at the Etihad Stadium.
"I would not have got to where I am today if I had stayed," he told the Daily Mirror.
"It was difficult for me at Manchester City as a young player aged 18 or 19, with all the money they have.
"Realistically, you look back and they only have Micah Richards from the academy playing for the club's first team - everyone else has been signed by Man City, so I feel I made the right decision leaving there."
Sturridge also lifted the lid on the misery he endured at Chelsea, and admits he lost his passion for football while at Stamford Bridge.
"At first, it was a matter of learning from the likes of Didier, and I thought I would get my opportunity sooner, but they didn't believe in me as a centre forward," he added.
"They always said, 'You're not a centre-forward, you're a winger' - that's how they saw me, but that hurt me because I've played down the middle all my life.
"The pitch has always been where I've been able to express myself the most, where I feel happiest, and I was deprived of that opportunity at Chelsea.
"There were times when I was sat at home, very upset, and I fell out of love with the game."