The 18-year-old winger has been a shining light in an otherwise disappointing campaign for the Reds so far this season.
But it is under the tutelage of current Liverpool manager Brendan Rodgers that the youngster has found his feet.
Sterling, who was born in Kingston, Jamaica, has been a regular first-team player this season, and his performances earned him a debut England cap last month in the friendly defeat in Sweden.
The teenager made his full debut for Liverpool earlier this season in the 2-2 draw with Manchester City in August.
Sterling has impressed to such an extent that Rodgers has maintained faith in the youngster ever since.
Sterling became the second-youngest goal scorer in Liverpool’s history when he netted the only goal of the game against Reading at Anfield in October this year.
Sterling has come to prominence at Anfield on the back of his electrifying pace and skillful ball control.
Rodgers has admitted recently that the winger is suffering from tiredness during a grueling first-team campaign, which has included Premier League, Capital One Cup and Europa League matches.
The Liverpool manager sees the hectic festive period as the right time to rest Sterling.
Sterling was keen to stay at Anfield and will now see his pay skyrocket to place him on a level similar to his first-team colleagues.
The news will delight Liverpool supporters, who have been starved of things to cheer this season.
The Reds are in a period of transition under Rodgers, and newcomers such as Sterling and midfielder Joe Allen have provided bright spots for the fans despite some disappointing results that have left Liverpool laboring in mid-table this season.