Raheem Sterling signs new mega-money five-year Man City contract as Pep Guardiola wards off Real Madrid interest

RAHEEM STERLING has handed Manchester City the perfect derby boost by agreeing a three year contract extension.

The new deal - which will keep the England ace at the Etihad until 2023 - could eventually earn him around £300,000 a week.

And it is a reward for Sterling's superb recent form which has seen him become a key man for Pep Guardiola's unstoppable side.

The agreement is timely as City were starting to worry about the 23-year-old's long-term future with just 18 months remaining on his existing deal.

The club's policy is that they would never allow one of their top stars to go into the final year of their contract.

So they would have been left with no choice but to sell him this summer had they not been able to reach a compromise.

Real Madrid were one of a host of top clubs keeping close tabs on the stand-off which has been going on for several months.

But the two parties finally found a compromise after resuming talks at the end of last month, and it will give City fans a huge lift ahead of their clash with local rivals United at the Etihad this Sunday.

Sterling took a while to settle after joining City in an acrimonious £49 million move from Liverpool in summer 2015.

But he scored 23 goals in their record-breaking double winning season last term and already has seven to his name this season.

Raheem Sterling said: “I’m delighted to sign. My development here has been incredible. I felt from the minute I got here it was the right choice for me.

"It’s really paid off for me and I’m really grateful.”

“Every season you come in you want to do better than your previous season. You want to try and develop and get better.

“With the facilities we’ve got here there’s no reason not to. With the coaching staff and the players we have in this team it’s the perfect environment to develop and get better.”