Paterson has previously faced Sterling during the Europa League qualifier between his club and Liverpool in 2012.
The Scotsman was not particularly impressive on the day, but he insists that he has improved a lot in the last four years and is looking forward to the game at Wembley.
The 21-year-old said: "I have played in a few big games at club level but this would be something else.
"It is going to be massive crowd and a great feeling to play at Wembley.
"Hopefully I can get some game time and lap up the atmosphere.
"In terms of the level of football, that Liverpool match would be the biggest game, but I also played in the League Cup Final at Hampden.
"I was up against Sterling when he played for Liverpool. I was playing right midfield and he was left midfield.
"I had just turned 17 so I was running about like a headless chicken without a care in the world. Now it is a bit more serious.
"England are a great side. They have £50million players in the team. But it is a great opportunity for us to put a marker down.
"We may be a bit nervous before it starts, but it's not going to be daunting.
"Once the whistle goes then it will be all guns blazing.
"We have to rectify what we have done in the last couple of games and take it on a bit. I'm looking forward to it."