Sterling, who turned 18 on December 8, put his signature to a deal described by the Reds as long-term - believed to be until 2017 - on Friday.
His future at Anfield had been the subject of much speculation before the deal was signed, but he insisted he never wanted to leave the club he joined from QPR's youth set-up in 2010.
"It's every 18-year-old's dream. I'm just really grateful to be at such a big club like this," Sterling told Liverpool's official website. There's a lot more to be done.
"I haven't begun yet, as the manager has said. Hopefully I can kick on after the New Year and try to do my best for the team and the football club."
While Sterling was always keen to remain at Anfield, there were a couple of hiccups during the negotiation process.
The winger took to Twitter on November 10 to dismiss reports that he had demanded a salary of £50,000 a week to match those of out-of-favour first-team colleagues Jordan Henderson and Stewart Downing - only to cause confusion by swiftly deleting the tweet.
Roberto Mancini has described Mario Balotelli's £340,000 club fine as "normal" and told the errant striker it is more important for him to respect himself than to respect his manager.
Balotelli abandoned his appeal against a fine of two weeks' wages imposed because he was suspended for 11 of Manchester City's 54 games last season.
The 22-year-old Italy international said he had accepted the punishment out of respect for Mancini, the supporters and the club.
But Mancini - who has long argued that it is up to Balotelli to realise his potential - said: "First of all he [should] respect himself, not me. Respect for himself is very important."
Balotelli was sent off twice last season and served additional suspensions for stamping on Tottenham's Scott Parker and for a red card against Dynamo Kiev in the previous year's Europa League.
He had planned to take City to a tribunal over the fine, but Mancini argued that it was right he had been punished.
"This is an old situation," he added. "I think it is normal when someone makes a mistake that he should take his responsibility. Mario did this. It is normal."
Balotelli did not travel to Newcastle for last week's 3-1 win and will not feature against Reading on Saturday, but that is because of a virus that forced him to miss training for two days.
"Mario is very unlucky," Mancini added. "He was ill this week, all week. He came in this morning [Friday], but can't do anything."
But Mancini confirmed that Balotelli's City career was not over, saying: "Mario is like the other players. If he deserves another chance, he will have another chance. Now he must deserve this."
Mancini cited the example of Kolo Toure, who served a six-month suspension in 2011 for taking a slimming pill that contained an illegal substance, but who fought his way back into the City side.
He added: "Kolo is another player who is part of our team and played well against Newcastle and Manchester United. If a player works well, he deserves to have the chance to play."
Manchester United defender Jonny Evans has signed a new three-and-a-half year deal to commit his future to the club until 2016.
The Northern Ireland centre-back came through the United academy after signing as a youngster and has made 141 appearances since his debut in 2007.
Evans had spells on loan with Royal Antwerp and Sunderland but has been a regular in the United squad since the end of his second stint at the Stadium of Light in 2008.
He told the club's official website: "I'm delighted to sign my new contract.
"I am so proud to play for such a great club, and there's no better feeling than playing football in this team and winning games.
"I have always felt that this is the right club for me. Even when I was nine or 10 years old back home in Northern Ireland, clubs asked me to go on trial but I didn't go because I knew that Manchester United was the place I wanted to play football.
"I have come through the Academy here and developed as a player with the help of all my team-mates, the manager and the coaching staff. I would love to play here throughout the rest of my career."
United boss Sir Alex Ferguson said: "Jonny has risen through the ranks to become an integral part of the first-team squad.
"He has developed into a top player for us and has scored a couple of important goals this season too. I am delighted he has signed a new contract."
Malaga have been banned from all UEFA club competitions for one season due to outstanding debts.
The Spanish outfit is one of nine clubs to have had sanctions levied against them following a meeting of UEFA's Club Financial Control Body.
Manuel Pellegrini's side will be prevented from entering the next European competition they qualify for and could face a further season's absence unless the club settles its debts.
Malaga, who are due to face Porto in the last 16 of this season's Champions League, have also been fined £244,000 for breaching UEFA Club Licensing and Financial Fair Play Regulations.
A statement on the UEFA website read: "Malaga is excluded from participating in the next UEFA club competition for which it would otherwise qualify in the next four seasons (i.e. 2013/14, 2014/15, 2015/16, 2016/17).
"In addition, Malaga will be excluded from a subsequent UEFA competition for which it would otherwise qualify (in the next four seasons) if it does not prove, by 31 March 2013, that it has no overdue payables towards football clubs or towards employees and/or social/tax authorities."
Five clubs are facing a three-year exclusion unless they can settle their outstanding debts by 31 March; Croatia's Hadjuk Split and Osijek, Rapid Bucharest and Dynamo Bucharest of Romania and Serbian side Partizan Belgrade.
Another Serbian club, Vojvodina, and Ukrainian side Arsenal Kiev were handed fines while a case against Polish side Lech Poznan was dropped.
Chelsea boss Rafael Benitez has no idea if John Terry will be available for any of their Christmas and New Year matches.
Terry is back in light training, and worked on Friday without a ball, but his recovery from knee surgery is proving complicated according to Benitez.
He was initially hopeful that his captain would return for Sunday's Barclays Premier League clash with Aston Villa, but those hopes are now out of the window and Benitez said Terry would need to come through harder training with no after-effects to come close to consideration.
"The knee is quite complicated," he said. "At least he's now on the pitch - that is positive news - but we cannot say, we cannot predict how long it will take.
"It's one step forward, one step back."
Further asked if Terry would make his comeback in the next fortnight, Benitez said: "I hope so but I am not a doctor. So I cannot guarantee anything."
Queens Park Rangers boss Harry Redknapp admits he would be delighted if the club can lure Nicolas Anelka back to the Premier League.
The 33-year-old striker left west London rivals Chelsea to join Chinese club Shanghai Shenhua almost a year ago.
But Anelka looks set to end his time in Far East following a pay dispute, and Redknapp has confirmed his interest in bringing him to Loftus Road.
"He is a player that is of interest to anybody," said Redknapp as he prepares for QPR's trip to Newcastle. "I think he is finishing in China so he is available.
"It is what you can do, whether you can afford these players, what they are looking for, whether they are reasonable, whether you can deal with them and most importantly whether you think they can do the job you want.
"He is a top player so he is a player we would be interested in, but whether we could afford to get anywhere near I him I am not sure.
"It depends, as I say, just how expensive the whole package comes to. If it is within reason, he is a player that could certainly improve your team. There is no doubt about it."
Footballing legend Diego Maradona is set to become the new coach of Iraq's national football team, according to Argentinian sources.
The former Argentina player and manager is best known for his starring role in the World Cup winning side of 1986 and the runners-up in 1990 but he also managed the Argentinian national team to the quarter-finals during the 2010 World Cup in South Africa.
Iraq are currently in third place in Asia's Group B with five points from five matches behind Japan and Australia and the potential appointment of Maradona, who will replace former Brazilian star Zico, outlines their desire to reach the 2014 World Cup finals.
"We received the offer and contacted Diego, who accepted it," an agent for World Eleven, Hernan Tofoni, told the website canchallena.com.
"The executive committee of the Iraqi Football Federation is to meet on Friday to confirm the financial terms of the deal.
World Eleven, which also manages the international activities of the Argentinian national team, was asked to facilitate the agreement.
"Diego is really enthused and phones us every day. He doesn't just want to coach (Iraq) for the next six months but long term," Tofoni added.
"He is excited by the fact that it's a challenge and that he'd be going to replace Zico."
Zico resigned as coach of Iraq's national team in November, saying the country's football association has failed to abide by the terms of his contract.
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