The 19-year-old winger was in impressive form on Sunday and was involved in all of the Reds' goals in their 3-2 victory over Norwich City at Carrow Road.
The England international opened the scoring with a strike from outside the box after just four minutes and set up Luis Suarez for the second seven minutes later.
Sterling was on target again just past the hour mark when his shot was deflected into the net.
Rodgers was delighted with the teenager's performance and believes that he is the best young player in Europe.
"I think he is the best young player in European football at the moment," he told Sky Sports.
"He is 19 years of age and I don't see anyone better. He is intelligent with the ball and he has been concentrating on scoring goals.
"His first goal was a wonderful strike and his pass for Luis' goal was like a top midfield player. Then there was his positioning for the counter-attack for the third goal.
"His overall performance has shown so much maturity and, for me, he is the best young player in European football at the moment."
Liverpool are now five points clear at the top of the Premier League with three games remaining.
Rodgers has refused to get carried away with his side's chances of winning the title and is focused on the Reds' achievements of guaranteeing their place in the top three.
The Northern Irishman has also suggested that striker Daniel Sturridge could recover from his hamstring injury in time for next Sunday's match against Chelsea at Anfield.
"We will see how it goes," he said. "It is not as serious as many other hamstring injuries are.
"We will assess his injury towards the weekend and hopefully he will be ready for the match.
"We have qualified for the Champions League, which was our target. We cannot finish any lower than third, which is an incredible achievement.
"Now we have the chance to play in the group stages. We just want to continue and finish the final three games as best as we can."