Ex-England international Sturridge is currently a free agent, having been released by Turkish club Trabzonspor in March after receiving a four-month worldwide ban for breaching betting rules.
The 31-year-old scored 67 goals in 160 matches for Liverpool and 24 goals in 96 appearances for Chelsea.
Sturridge also spent three years at Man City at the start of his career and Richards says the Premier League club should consider resigning him on a free transfer.
Pep Guardiola’s City have endured a mixed start to the new season and both Sergio Aguero and Gabriel Jesus have struggled with injuries.
‘When he plays football again it might be with another team abroad, but I can’t help but think that there are several clubs in the Premier League who are missing a trick by not signing him,’ Richards wrote in a column for BBC Sport.
‘I would include City in that, just to fill in while Sergio Aguero and Gabriel Jesus are injured. Even if he was half-fit, he would score goals in that side.’
Former Man City and England defender Richards added: ‘Technically he is good enough, but then he always has been.
‘He was a year younger than me when he came to City aged 13, but he was so good he moved up to play with us older boys straightaway.
‘For those who criticise him and say he has not done enough with that talent, he has won the Premier League, Champions League and FA Cup with Chelsea, and scored at a World Cup and European Championship for England.
‘Daniel had a phenomenal scoring record when he went to Liverpool too despite always being more of a number 10 than a number nine, and, when he was partnering Luis Suarez, those goals almost took them to the title in 2014.
‘So, when it comes to the time to look back on his career, I don’t think you could ever class him as a failure – but hopefully that won’t be for a few years yet.
‘At the moment it almost feels like people have forgotten how good he is, but Daniel still has time to remind them, and show everyone what he is really all about.’