The Swansea defender will have the task of containing the young winger when his team take on City, and he sang Sterling's praises in the lead-up to the tie.
"Sterling has always been a good talent," he said. "Just look at what he did at Liverpool. With the right manager he has had an even better season and you can see the difference Guardiola has made to him."
Olsson, who will be travelling to Russia this summer with his national side Sweden, has backed Sterling to perform for England in June.
"He makes an impact and he is the type of player that can make an impact at the World Cup," the defender stated.
"He is scoring and setting up goals and those are the players that teams need. He is one of the players with England who has that extra bit of quality."
However, despite the quality of Sterling and and his Manchester City teammates, Olsson claims his side will not just let Guardiola's side walk all over them on Sunday.
"They have shown throughout the season they are a very good team," he acknowledged. "But we are going there to try and get something."
City are already Premier League champions, and will be given a guard of honour by Swansea at the Etihad prior to the game, but that's where the respect will end for Olsson.
"They have won the league but we are not going to be focused on their show or their party," he stated. "We will focus on us and try and make it a disappointment for them."
"We nearly got a point up there last season when they had pretty much the same side, so with confidence and belief you never know what is going to happen."