"My development here has been incredible", Sterling told City's website.
One of the highlights of the Premier League calendar, the Manchester Derby is unmissable.
The home side started the match at a ferocious pace and, such was City's dominance, the opening goal actually felt long overdue despite coming after only 12 minutes.
The new deal is one of the most expensive in City's history and Sterling said: "I'm delighted to sign".
The balance of power has certainly shifted from Red to Blue in the northern city of Manchester in recent years, with Man City winning three of the last seven Premier League titles, while Manchester United have won just one.
Sterling, who was born in Marverly, St Andrew, has represented England 46 times.
Saudi coalition in Yemen, under pressure, ends U.S. refueling
Germany said last month that it would halt German arms exports to Saudi Arabia until the killing of Khashoggi was explained. Currently, the Pentagon provides refueling capabilities for about 20 percent of coalition planes flying sorties over Yemen.
Guardiola, who normally leaves all the wheeling and dealing to his trusted friend Txiki Begiristain, Manchester City's sporting director, is said to have gotten involved when City were refusing to meet Raz's wage demands.
This season, City have continued where they left off, regaining their position at the top of the tree, while United have endured a woeful start to the season.
"He's quick, strong and excellent in front of goal - everything a modern-day forward needs to excel".
City said they will not be commenting on the claims and that the attempt to damage their reputation had been "organised and clear".
Jesee Lingard failed to control a David De Gea pass on halfway and Fernandinho was quickly onto the ball to set City on the attack. Let us know what you think by leaving a comment. "With the coaching staff and the players we have in this team it's the flawless environment to develop and get better". The loss of Pogba to injury did not help Mourinho, but by picking a midfield of Nemaja Matic, Ander Herrera and Marouane Fellaini, he denied his team any kind of attacking flair.
The future: "There's definitely a lot more (to come), there's stuff I'm still working on, there's never a time where I feel this is where it stops, I always want to get better and get my numbers up, score more goals and get more assists".