Recent reports had claimed that the 17-year-old could be used as a bargaining tool in a swap deal with Arsenal for winger Theo Walcott but it has been claimed that the Reds are ready to offer Sterling a new deal.
"Raheem is in a really good place here," ESPN quotes Rodgers as saying. "He has been given an opportunity here this season. He will tie himself down to a new contract because he wants to be here and he can be a great here.
"We are trying to move the club forward over the next couple of years and there will be a little bit of pain along the way, but there are not too many teams in the Premier League who are starting with three teenagers and he is one of our outstanding stars. Why would you leave one of the biggest clubs in world football? It's a no-brainer."
Sterling has established a regular first-team place under Rodgers this season.