Sterling's current deal is set to expire in the summer of 2017 and Liverpool have been in prolonged talks with the 20-year-old over a lucrative extension.
Last month Goal revealed that the England international was edging closer to committing to a new contract after receiving assurances that Rodgers' own future at Anfield was not under immediate threat.
An agreement has yet to be announced but Rodgers insists there are no problems with Liverpool's offer and believes Sterling is more than content with life at Anfield.
"It's an incredible deal for a young player. I've spoken to Raheem a number of times, he's very, very happy," the northern Irishman told reporters.
"He's been granted an opportunity to play here, and they get rewarded - but we're not a club to give way, way above what a player is worth at the certain time of their career.
"I'm not talking about Raheem, but in general. We want to reward our best talents, a big part of the future.
"If they get too much, too young, it can really sabotage their development. That's why we communicate a lot with players and advisers.
"In Raheem's case he's been outstanding but we must not forget he was a 17-year-old boy given an opportunity – in two-and-a-half years he's been outstanding, but he still has a long way to go.
"This is the place for him to develop, and he knows that as well."
Liverpool take on Tottenham on Tuesday with Rodgers hoping to do the double over Spurs, having already seen his side cruise to victory at White Hart Lane back in August thanks to goals from Sterling, Alberto Moreno and Steven Gerrard.
"I think we've performed better than the 3-0 win over Spurs but not got the results. The games against Chelsea, we were outstanding," he added.
"There's no doubt that performances have been at a real good level at White Hart Lane, and when we've played at Anfield, as well.
"The team [Spurs] is playing very well, the big difference then and now is the introduction of two home grown players – Mason and Kane."
“We just need to find that clinical edge up top – that's the improvement we need to make."Star striker Daniel Sturridge continued his recovery from a long injury lay-off with a cameo appearance against Everton on Saturday, but Rodgers is unsure whether the 25-year-old will be able to return to his starting XI against Tottenham.
"He's obviously been training for a bit of time, there will be a time when he can start – whether that's tomorrow or the weekend, we'll have to see," he replied.