The new deal is one of the most expensive in City's history and Sterling said: "I'm delighted to sign". I felt from the minute I got here it was the right choice for me. "It's paid off and I'm really grateful", he added.
Sterling, who was born in Marverly, St Andrew, has represented England 46 times. Raheem has improved dramatically in the past two seasons and is now one of the Premier League's best attacking players.
Sterling has committed his future to City with the new three-and-a-half year contract extension worth around £275,000-a-week.
Director of Football at Manchester City, Txiki Begiristain called Sterling's signing a significant moment for the club.
'His statistics tell their own story.
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. As even Mourinho said at the time, it was probably a bit of a red card and a bit of a very smart, experienced Argentinian. "Players like David [Silva] and Sergio [Aguero] have done it year in year out, not just for their club but for their countries".
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Mourinho would not be drawn on the financial duplicity of which City have been accused via leaked emails in the last week, though he did mention that the quality they have on the pitch began with investment; he also made the point that though generally regarded as spendthrift, his own club can not go out and buy four full-backs at once.
Jamie Carragher wasn't impressed with his former club's failure to hold on to such a bright talent, tweeting in 2015: "I wish Lfc bought players as well as they sold them!"
"Every season you come in you want to do better than your previous season".
Sterling was one of Guardiola's standout players in City's record-breaking title run last season and has carried on that form this term with a string of impressive performances.
"I think they are a better team, I do".