Raheem Sterling has reached an agreement in principle with Liverpool over a new contract.

The 18-year-old is expected to sign the five-year deal before Christmas.

Sterling, who is currently on a £2,000-per week youth contract, will see his earnings initially jump to around £30,000 per week.

This season has seen Sterling win his first England cap and establish himself in manager Brendan Rodgers’s team.

All parties are understood to be happy with the agreement and despite interest from a number of other clubs, Sterling has always been keen to continue his development at Anfield.

Sterling’s earnings will rise during the course of the deal to bring him in line with a number of senior players whose place the teenager has taken.

The former QPR trainee turned 18 earlier this month and his rapid progress has been one of the stories of the season, but Rodgers had repeatedly stressed his fear that too much, too soon might harm the player’s development.

However, the situation was complicated by the lucrative salaries earned by Joe Cole, who earns more than £100,000 per week, and Stewart Downing, who earns about £60,000 per week, despite not being regulars in the Liverpool first team.

But with Sterling expressing his desire to stay at Anfield, Liverpool have come up with an offer that will keep one of the country’s hottest young properties on Merseyside.