The 20-year-old England international has been in protracted talks over a new deal and there has been some doubt over the player’s future at Anfield during the Reds stuttering league form.
Manager Brendan Rodgers has remained calm over negotiations, despite the club losing captain Steven Gerrard this week, and Sports understand Sterling is to sign a new five-year deal on Merseyside within the next week.
Gerrard, who this week confirmed he would not be signing a new deal and will instead be joining LA Galaxy when his contract expires at the end of the season, recently urged Sterling to commit himself to the club and become an Anfield great.
And the Jamaican born forward, whose previous contract ran until 2017, is now set to remain at the club until 2020.
Sterling was signed by former Reds academy boss Frank McParland from Queens Park Rangers, as a 15-year-old in 2010, and made his senior Liverpool debut in March 2012.
He established himself as a first-team regular during Rodgers first season in charge, making 36 appearances and scoring two goals in all competitions by the end of the 2012-13 season, whilst also making his senior England debut.
Sterling has now become a key player for the club and has made 28 appearances already this term, scoring six goals, with Liverpool currently eighth in the table ahead of Saturday’s trip to Sunderland.
Sterling has 13 caps for England and played in last summer’s World Cup in Brazil.