The young winger has made an immediate impact after breaking into Liverpool’s first team this season, and scored the winner against Reading in the Premier League last month.
The 17-year-old was linked with a move away from Anfield over the summer with Tottenham said to be interested in securing his services, but his rise to prominence on Merseyside had lead most to expect him to stay put.
However according to the Daily Mail, Sterling's camp demanded a £48,000-per-week increase from his current deal when talks re-opened with Liverpool last week.
His current deal expires in 18 months and according to the Mail, the talented youngster will reject Liverpool’s offer of a new deal unless they meet his demands. The paper reports the Reds are preparing a deal in the region of £20,000-per-week, although that figure has not yet been pitched to Sterling’s representatives.
Such is the impact made by Sterling this season that he has already earned an international call-up for England for their friendly against Sweden this month, while has made 16 appearances overall for Liverpool this term.
Liverpool boss Brendan Rodgers believes that the young winger fully deserves his England call up given his form this season.
'He has been fantastic this season since he has broken in,’ he said. ‘It’s a great effort by him. He deserves his call-up.’