The Chilean looks set to take over at Eastlands.
After confirming he will be leaving Malaga at the end of the season, Manchester City target Manuel Pellegrini has agreed terms with the north west club, reports the Telegraph.
The Chilean manager has agreed a £3.4million-a-year contract with City and could be announced as their new boss as early as next week.
Pellegrini is expected to see out the remainder of the La Liga season with Malaga however, with their last game of the Spanish league coming against Barcelona on June 1.
The 59-year-old was highlighted by City’s sporting director Txiki Begiristain as the No.1 candidate to take over at Eastlands following the manager’s successful spells at Real Madrid and Villarreal – as well as leading Malaga to the Champions League quarter finals this year.
Pellegrini’s first task as boss at the Etihad Stadium will be to discuss contracts with Carlos Tevez, Gareth Barry and Joleon Lescott, with the trio’s current deals running out in a year’s time.
Whilst it is unknown whether England pair Barry and Lescott will be wanted by the Chilean, a one-year extension to Tevez’s contract is a must for Pellegrini – especially as the Argentina international has been linked with a big money move to either AS Monaco or Juventus.
The manager’s arrival will conclude one of the worst kept secrets in football in recent times and he is expected to be joined in the Premier League by Madrid coach Jose Mourinho, who’s set to return to Chelsea.
Pellegrini’s predecessor Roberto Mancini was sacked for failing to bring more than three trophies in three years City, so the new man in charge will have to provide instant success to the club – particularly in the Champions League.