We construct the action of the q-deformed W-algebra on its level r representation geometrically, using the moduli space of U(r) instantons on the plane and the double shuffle algebra. We give an explicit LDU decomposition for the action of W-algebra currents in the fixed point basis of the level r representation, and prove a relation between the Carlsson-Okounkov Ext operator and intertwiners for the deformed W-algebra. We interpret this result as a q-deformed version of the AGT-W relations.