But Sterling feels at home at City and believes the Premier League champions are the ideal place for him to continue developing.
Sterling has seven goals already this season and Guardiola has consistently said the 23-year-old is becoming stronger and more mature.
"I'm delighted to sign", he said.
Sterling joined City from Liverpool in 2015 in a deal worth up to £49m and has gone on to score 51 goals in 154 appearances for the club. 'I felt from the minute I got here it was the right choice for me. It's really paid off for me and I'm really grateful.
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".
Just as significantly, he represents everything we want in our best young England players; technically gifted, focused, ambitious, hungry to learn and very intelligent tactically.
"With the facilities we've got here there's no reason not to".
Meanwhile, Legit.ng previously had reported that Premier League champions Manchester City are reportedly struggling to reach a new agreement with their star winger Raheem Sterling.
The 23-year-old attacker has come on leaps and bounds at City since joining from Liverpool in 2015, a deal which may eventually cost the club almost £50 million ($A90 million).
Get closer to the likes of Sergio Aguero, Kevin De Bruyne, Gabriel Jesus, Raheem Sterling, Riyad Mahrez, Benjamin Mendy and the rest of Pep Guardiola's team. With the coaching staff and the players we have in this team it's the ideal environment to develop and get better'.
Txiki Begiristain, City's sporting director, has secured another big name for the long-term and was obviously delighted.
'His statistics tell their own story.