The 25-year-old right-back played a key role in Pools’ promotion to the Football League last season, scoring a penalty in the shoot-out victory over Torquay United in the promotion final.
Dave Challinor told The Mail last week that Hartlepool were ‘more or less there’ with agreeing a new deal with Sterry as well as goalkeeper Ben Killip.
And Pools have now confirmed that the former Newcastle United man has signed a two-year deal at Victoria Park.
Following a successful 2020-21 campaign at Pools, Sterry was subject of interest from the likes of Notts County, Sunderland and three other Football League clubs. But the full-back was delighted to secure a new deal at Hartlepool.
“I am over the moon to re-sign for the next two seasons,” he told the club website. “I have loved every minute at the club and we are all looking to push on next season.
“Ever since I joined Hartlepool, the staff and the lads have been fantastic, and I am now just enjoying playing football.
“We have a big season ahead back in the Football League and I can’t wait to get going. The biggest factor for me was the fans.
"The support we had inside The Vic at the end of the season and the Promotion Final was surreal. The passion they have for the club is unbelievable and I can’t wait to play in-front of a packed-out Victoria Park next season.”