DONE DEAL: Sterling reaches agreement amid Real Madrid transfer reports

[PHOTO: COURTESY]

Raheem Sterling has reportedly verbally agreed a new five-year deal at Manchester City.

Mirror Sport revealed back in August that negotiations had reached a stand-off with City unwilling meet the England international's demands and give him the same as some of their top earners.

Sterling's current £175,000-a-week deal has two years remaining and there were fears over his value if he failed to sign an extension.

City offered to increase his wages to around £200,000-a-week with a package of lucrative success-related bonuses and yearly increases - but appear to have bowed to his demands.

Sky Sports report Sterling has verbally agreed the contract and will put pen to paper in the coming weeks.

Sterling's contract situation had alerted Real Madrid, who were considering making a move to take him to Spain.

But he is to commit his future to the Premier League champions in another boost to boss Pep Guardiola.

Sterling has already scored four this season, having found the net 23 times in all competitions last term.

It comes after Sterling, who set up the winner against Spurs on Monday, fired back at Sky Sports pundit Gary Neville.

The United legend said: "Look at Raheem Sterling and his transformation over the last 12 months and why he is scoring 18, 20 goals a season. That's the coaching Pep Guardiola has put into him."

Sterling suggested he deserves credit for the role he has played in his transformation.

Sterling posted an Instagram story on Monday which read: 'But the transformation on his game in the last twelve months is from coaching!!! The disrespect from G Nev' followed by four laughing emojis.