Raheem Sterling signs three-year contract extension

The 23-year-old England forward's previous deal at Etihad Stadium was due to expire at the end of next season.

It is understood the new contract will make Sterling one of the best-paid English players in the Premier League.

"I'm delighted to sign. My development here has been incredible," said Sterling.

"I felt from the minute I got here it was the right choice for me. It's paid off and I'm really grateful."

Sterling, who has scored seven goals for the club this season, joined City from Liverpool in a £49m deal in 2015.

He scored 23 goals last season as the Blues won the Premier League and Carabao Cup.

Capped 46 times by England, he scored twice against Spain last month - his first international goals for three years.

City director of football Txiki Begiristain said: "This is a significant moment for the club. Raheem has improved dramatically in the past two seasons and is now one of the Premier League's best attacking players. His statistics tell their own story.

"He's quick, strong and excellent in front of goal - everything a modern-day forward needs to excel."

The new deal comes in the week that German news magazine Der Spiegel alleged City overvalued sponsorship deals to help meet Uefa's Financial Fair Play (FFP) rules.

City said they will not be commenting on the claims and that the attempt to damage their reputation had been "organised and clear".