RAHEEM Sterling has signed a new contract committing him to Manchester City until 2023, the English Premier League champions have announced.
The 23-year-old England forward has been rewarded for his excellent form with an improved package, reportedly worth up to STG300,000 ($A538,600) a week, that extends his previous deal by three years.
Sterling, who joined City from Liverpool in a deal worth a potential STG49 million in 2015, was an integral member of last season's Premier League title-winning side and has begun the new campaign in fine style.
"I'm delighted to sign. My development here has been incredible," Sterling said.
"I felt from the minute I got here it was the right choice for me. It's really paid off for me and I'm really grateful."
Sterling scored 23 goals in all competitions last term and has netted seven more for the club in the opening three months of the current season.
He also scored two goals to help England to a memorable victory in Spain last month.
Contract talks between City and Sterling's representatives had been going on for some time and there were reports of sticking points during the process.
That led to speculation Real Madrid had been alerted to his potential availability, but City were determined to retain the services of a player who had shone under the guidance of manager Pep Guardiola.
Director of football Txiki Begiristain said: "This is a significant moment for the club. Raheem has improved dramatically in the past two seasons and is now one of the Premier League's best attacking players.
"We're all delighted he has committed his future to City."