Raheem Sterling has verbally agreed a new five-year deal with Manchester City, Press Association Sport understands.

The 23-year-old became British football’s most expensive player in 2015 when swapping Liverpool for the Etihad Stadium in a deal rising to £49million.

Sterling has come on leaps and bounds under the tutelage of manager Pep Guardiola, but recently talk has grown over the forward’s future, with his existing deal set to expire in 2020.

However, Press Association Sport understands that a new and improved five-year contract has now been verbally agreed with the England international to keep him at the Etihad Stadium.

Sterling played a key role in City’s record-breaking title triumph last term and this season has netted four goals in eight Premier League appearances in all competitions.

The 23-year-old’s future at the club has been a hot topic since the start of the season.

Guardiola said ahead of August’s Community Shield encounter with Chelsea that there was “no doubt” City wanted him to stay, but left the situation in the hands of Sterling’s representative and City’s director of football Txiki Begiristain.

There has now been a breakthrough in terms for the former Liverpool flyer, who started his career in the youth set-up at QPR but left without making an appearance in 2010.

Sterling, who was raised near Wembley Stadium, remains close to his London roots and Press Association Sport understands the forward will be investing in an academy in the north of the capital.

‘Believe in a Dream’ is reportedly what it could be called, with the forward said to be waiting for potential premises to become available from Brent Council.