A wheel bearing assembly has a wheel bearing with an inner race and outer race for fitting into a hub of a wheel. Bearings are seated between the inner race and the outer race. The inner race has an extension that axially extends inboard beyond the outer race. A spacer sleeve has a cup shaped end for snugly nesting the extension of the inner race. The cup shaped end has an inner radial wall for abutting an end wall of the inner race. The spacer sleeve also has an outer cylindrical wall forming a side wall of the cup shaped end and has an outer diameter sized for being snugly received into the hub of the wheel.