It was reported Sterling was racially abused and attacked on Saturday after arriving at City's training ground.
When the footballer got out of his auto to ask what the problem was, the man is said to have repeatedly kicked him in the leg.
City, who declined to comment, provided the force with CCTV footage which is thought to show the alleged attacker pulling up in a van outside the Etihad Campus, across the road from the stadium.
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The statement reads: "Kick It Out was alerted to the racist attack on Manchester City player Raheem Sterling, which occurred prior to their Premier League fixture against Tottenham Hotspur, on Saturday evening (16 December).
Telegraph Sport understands that Sterling got out of his auto to ask what the problem was only for the man to react by reputedly kicking the City player in the leg".
"An investigation was launched and a 29-year-old man was arrested earlier this morning, Tuesday, December 19, 2017, on suspicion of racially aggravated assault".
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As revealed by Sky Sports this evening, police in Manchester are now investigating an alleged hate crime against Manchester City star Raheem Sterling. He is now in police custody for questioning.
Greater Manchester Police were made aware of the incident by City on Sunday.
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