The new five-year deal is heavily incentivised and could net the Liverpool striker almost £40m.
Sturridge’s pay packet is expected to soar from £65,000-a-week to beyond £150,000-a-week if he is playing and scoring regularly.
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Talks began at the end of last season and, despite the player’s representatives and the club being apart at the start of the month, common ground was found to tie Sturridge’s long term future to the Anfield club.
As with all the contracts now on offer from Liverpool, the terms are performance-related and mean Sturridge will be rewarded financially for his progress on the pitch.
The improved deal is a reflection of the strides Sturridge has made since arriving on Merseyside from Chelsea for £12m in January 2013 with 36 goals plundered in just 52 appearances.
Sturridge has been sidelined for a month with a thigh injury sustained while with England and is unlikely to face West Brom tomorrow.
“He has had a Grade One injury now for near on four weeks which is a long time,” said manager Brendan Rodgers.