The 20-year-old’s current contract expires in 2017 but he has already rejected Liverpool’s offer of a new deal worth over €130,000 per week.
Sterling, who is currently earning around €45,000 a week, is expected to confirm his decision in a meeting on Friday with Rodgers and Liverpool’s chief executive Ian Ayre.
Both Manchester City and Arsenal are keeping tabs on the winger’s contract situation and would explore the possibility of a potential deal should he become available this summer.
Meanwhile, Zinedine Zidane revealed in April that Real Madrid are also monitoring Sterling and suggested that the midfielder was one of the best young players in the world.
Speaking last week, Steven Gerrard urged Sterling to remain at Anfield and continue his development under Rodgers.
"Of course I'm biased but my advice to Raheem now is you have a manager who will believe in you and you can learn from and there is no one better than Brendan Rodgers for that," said the Liverpool captain.
"He should sign a new deal here. Brendan is a fantastic man-manager and puts a lot of time and effort into the development of an individual.
"The danger for these young players is they want it all too soon and they go chasing it. Then they go to another club and just become a number."
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