The 18-year-old rising star has pledged his future to the Merseyside club, inking a long-term deal that will keep the England winger at Anfield.
Earlier this week, Goal.com reported that Sterling was on the brink of signing a five-year-deal with the Reds, and on Thursday, Liverpool manager Brendan Rodgers said he was confident that a deal would be completed within 24 hours. Friday, Liverpool announced that the talented youngster has pledged his future to the Merseyside club.
"It's every 18-year-old's dream. I'm just really grateful to be at such a big club like this," Sterling told the club's official website. "There's a lot more to be done. I haven't begun yet, as the manager has said. Hopefully I can kick on after the New Year and try to do my best for the team and the football club."
Sterling was signed from QPR in 2010 for an initial fee believed to be around 500,000 pounds and has since gone on to become a first-team regular at Anfield. Having chalked up 25 appearances so far this term, Sterling's form was impressive enough to earn him his first international call-up for Roy Hodgson's England side in November.
"This is another positive step forward for the football club in securing the long-term future of one of the country's brightest young talents," Liverpool's managing director Ian Ayre said. "The negotiations were very positive and both parties acted in a very responsible way to reach an outcome that benefits both Raheem and Liverpool FC."