The 19-year-old was one of the Reds’ star performers last term as Liverpool came close to winning a first Premier league title.
And that has convinced boss Brendan Rodgers to hand him a new bumper deal that is thought to treble his current £35,000-per-week salary.
Rodgers said: “Raheem is a very intelligent player. He has a good football brain, and great belief in himself.
“At the end of last season [2012-13], we wanted to give him a rest because we shouldn’t forget his age – he was dealing with huge demands and we didn’t want to burn him out physically and mentally.
“Then, he had to come back and fight for his place, which he has done fantastically. Once he cleared his head, focused on football and remembered that he has all the tools here to become whatever he wants to be, achieving excellence was natural.”
And Rodgers also believes Sterling can reproduce his stunning performances for England in this summer’s World Cup in Brazil.
“He can replicate what he’s done for us with England if he’s given the freedom to play fearlessly,” he added.
“It’s easy for people to forget that he’s still very young because of his mature performances.
“And what’s he’s achieved this season is fantastic because he’s coming up against older, more experienced players and often ones bought for millions and millions of pounds.
“As I’ve said, Raheem’s been one of the most outstanding young players throughout Europe and we just want him to kick on now. He can become as great as he wants to be; we will help him in every aspect.”