Sterling was left out for Saturday’s victory at Fulham as manager Pep Guardiola rotated his players.
Guardiola said: “He travels with the team, of course. All the squad travel to Budapest.”
Asked if Sterling had responded well to his omission, Guardiola said: “Always. Raheem and all the players make training and react really well.
“I don’t expect they are happy, that’s normal. It’s always happened since football was created.
“Raheem, in this case, has been so important for the team and all of us.”
Guardiola has a fully fit squad to choose from for the last-16 second leg, with Nathan Ake available again as he works back to match fitness.
Manchester City predicted XI (4-3-3): Ederson; Walker, Dias, Laporte, Zinchencko; Rodri, De Bruyne, Gundogan; Bernardo, Jesus, Sterling