The England international was heavily linked with a move to the Gunners as part of a swap deal involving Alex Sanchez in the summer, but a move failed to materialise and he ended up staying at the Etihad Stadium.
Sterling has since gone from strength to strength and is enjoying his most productive season since arriving from Liverpool in a £45million back in 2016.
City are unlikely to entertain the idea of letting him go if Arsenal make another move, but the player says he would only be interested in a move abroad at some point in the future, not a switch to the Gunners.
"I'm happy at Man City at the moment," he revealed. "But nobody knows what the future brings so one day, definitely, it would be nice to play abroad. It would be a great experience.
"Spain's attractive. Anywhere the weather is nice really! Can't be in London. I can't be near my friends. They got to stay down there."